Colorado State University System Board of Governors Meeting Agenda February 1-2, 2017

1 Colorado State University System Board of Governors Meeting Agenda February 1-2, 2017

BOARD OF GOVERNORS February 1-2, 2017 CSU-Pueblo, the Fieldhouse at the Neta and Eddie DeRose Thunderbowl

WEDNESDAY, FEBRUARY 1, 2017

INNOVATION AND QUALITY IN ONLINE EDUCATION 11:00 a.m. – 1:00 p.m.

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OPERATIONAL REVIEW – METRICS AND TRACKING 1:15 p.m. – 2:45 p.m.

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STRATEGIC PLAN UPDATES 3:00 p.m. – 5:00 p.m.  Colorado State University Strategic Plan  CSU-Pueblo Strategic Plan  CSU-Global Campus Strategic Plan  CSU System Strategic Mapping Update

BOARD DINNER (social) Brues Alehouse on the Riverwalk, 120 E. Riverwalk, Pueblo, CO 81003 6:30 p.m.

THURSDAY, FEBRUARY 2, 2017

BOARD OF GOVERNORS BREAKFAST 8:00 a.m. – 8:30 a.m.

COMMENCE BOARD MEETING – CALL TO ORDER 8:30 a.m. – 4:55 p.m.

1. PUBLIC COMMENT 8:30 a.m. – 8:45 a.m.

2. CSU-PUEBLO REPORTS 8:45 a.m. – 9:15 a.m.  Student Representative’s Report – Presented by Antonio Huerta  Faculty Representative’s Report – Presented by David Volk  President’s Report – Presented by Lesley Di Mare

3. AUDIT AND FINANCE COMMITTEE 9:15 a.m. – 10:45 a.m. Nancy Tuor, Chair Audit Items  BKD FY2016 Audit Results  Review of Audit Reports Issued  Status of FY 2016-2017 Audit Plan  Past Due Audit Recommendations Finance Items  FY 2018 Campus Incremental Budget/Tuition update  Quarterly Financials – 2nd Quarter  Action: Changes to the CSU System Debt Policy  Short-term Financing Options

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2 Colorado State University System Board of Governors Meeting Agenda February 1-2, 2017

4. ACADEMIC AND STUDENT AFFAIRS COMMITTEE 11:00 a.m. – 12:00 p.m. Jane Robbe Rhodes, Chair  New Degree Programs . CSU: Master of Addiction Counseling . CSU-Pueblo: Bachelor of Science in Wildlife and Natural Resources  CSU: New Graduate Certificates . Adult Basic Education . Sustainable Military Lands Management  Faculty Manual Changes – CSU, CSU-Pueblo  Sabbatical Summaries for 2015-16 – CSU, CSU-Pueblo  Campus Reports . Accreditation Overview

LUNCH (CSU-Pueblo Center for Teaching and Learning and MAESTRO Program) 12:00 p.m. – 1:00 p.m.

5. BOARD CHAIR’S AGENDA 1:00 p.m. – 1:15 p.m.

6. CHANCELLOR’S REPORT 1:15 p.m. – 1:30 p.m.

7. CSU-GLOBAL CAMPUS REPORTS 1:30 p.m. – 2:00 p.m.  Student Representative’s Report – Presented by Andrea Buchmeier  Faculty Representative’s Report – Presented by Tony Vrba  President’s Report – Presented by Becky Takeda-Tinker

8. COLORADO STATE UNIVERSITY REPORTS 2:00 p.m. – 2:30 p.m.  Student Representative’s Report – Presented by Daniela Pineda-Soracá  Faculty Representative’s Report – Presented by Paul Doherty  President’s Report – Presented by Tony Frank

9. APPROVAL OF CONSENT AGENDA 2:35 p.m. – 2:40 p.m. A. Colorado State University System  Minutes of the December 8-9, 2016 Board and Committee Meetings B. Colorado State University  New Master of Addiction Counseling  New Graduate Certificate: Adult Basic Education  New Graduate Certificate: Sustainable Military Lands Management  Faculty Manual Section D.3.6, Section D.5.1, and Appendix 1  Faculty Manual Section I.11 C. Colorado State University-Pueblo  Bachelor of Science in Wildlife and Natural Resources  Faculty Handbook revision – section 1.2.5.5

10. EXECUTIVE SESSION 2:40 p.m. – 3:45 p.m.

11. GENERAL ACTION ITEMS 3:45 p.m. – 3:50 p.m.

12. REAL ESTATE/FACILITIES COMMITTEE 3:50 p.m. – 4:10 p.m. Scott Johnson, Chair Action: Program Plan for the Corbett-Parmelee Hall Dining and Corbett Lobby Renovation Action: Long-Term Project Development for CSU’s South Campus Page 2 of 3

3 Colorado State University System Board of Governors Meeting Agenda February 1-2, 2017

13. EVALUATION COMMITTEE – (Executive session) 4:10 p.m. – 4:50 p.m. Rico Munn, Chair

14. BOARD MEETING EVALUATION 4:50 p.m. – 4:55 p.m.

ADJOURNMENT 4:55 p.m.

Next Board of Governors Board Meeting: May 2-3, 2017, Colorado State University, Fort Collins

APPENDICES I.Construction Reports II.Correspondence III.Higher Ed Readings

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Section 1 Public Comment

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Section 2

CSU-Pueblo Campus Reports

 CSU-Pueblo Student Representative’s Report  CSU-Pueblo Faculty Representative’s Report  CSU-Pueblo President’s Report

Colorado State University-Pueblo Student Representative’s Report ASG President Antonio Huerta February 2017

General Statement CSU-Pueblo has officially welcomed 2017 with open arms. ASG has grown to nearly 34 members and are all ready to continue making a positive impact on campus.

Campus and Student Initiatives and Projects Some projects currently being implemented are adding more recycling bins in the Library and Academic Research Center.

External Initiatives and Projects As for next semester, the annual spring concert will be held on April 27th with country singers Dan+Shay as headliners. The Student Leadership Experience was in Colorado Springs at the Cheyenne Mountain Resort and hosted 55 students. There were many presenters, projects, learning activities, and speeches given at the retreat. Internal Initiatives and Projects

Because of all the interest of being involved in ASG, we have hired 11 out of the 12 new student government positions. These new positions are called legislative aides and will work hand in hand with senators and directors with projects, ideas, and professional development. We have also appointed the ASG Election commission to start the election processes. They are working on a deadline and will eventually set the election schedule.

Closing Statement With a New Year and new semester, many great initiatives, projects, and events will be coming to fruition on our campus.

“For the strength of the pack is the wolf, and the strength of the wolf is the pack.” 7

Colorado State University System Board of Governors

CSU-Pueblo Faculty Representative Report submitted by David Volk January 22, 2017

Items currently under discussion among CSU-Pueblo Faculty Senate and Faculty:

 Clarification of Assistant Department Chair position in Faculty Handbook (approved) o Faculty Senate clarified and defined the Assistant Department Chair position in the Faculty Handbook. The Assistant Chair will receive a one-course release per semester for administrative duties. This clarifies the role of the current director (Assistant Chair) of Foreign Languages within the Department of English and Foreign Languages.

 New degree proposals (expedited readings) o Faculty Senate continues to review and consider five new degree programs approved by the CSU Board of Governors: Wildlife and Natural Resources, Master of Social Work, the Doctor of Nursing Practice, the Masters degree in Athletic Training, and the Early Childhood as an additional endorsement area for teaching licensure.

 Changing compensation for merit in promotion salary increases o Compensate for merit in ranked faculty by increasing the current promotion salary increases to $6000 and $8000 respectively for assistant to associate and associate to full professor. Compensate for increased experience by providing a salary increase of 0.72% yearly, independent of any cost of living adjustment. Provide cost of living adjustments yearly, as a function of the current inflation rate.

Spring 2017 Convocation: Experiential Education Roundtable Workshop

Continuing on the work of our HLC Quality Initiative (to expand the understanding and use of experiential education [EE] pedagogy at CSU-Pueblo), the faculty EE Roundtable, under the direction of the University EE Director, Daniel Bowan, aim to increase the number of EE courses officially designated on CSU-Pueblo transcripts. At the Spring 2017 Convocation, approximately 15 faculty attended Dr. Bowan’s workshop on the application process.

EE Designated courses include a minimum of 10 hours of experiential learning per credit hour, a reflective component as a critical part of the course assessment, and an explanation to students about EE pedagogy. Increasing the number of EE courses campus-wide and the number of students taking EE courses is a goal of the University Strategic Plan.

Presidential Search Committee: conference call December 19 with Parker Executive Search  Confirmed key dates and the process moving forward. Web repository for applicant materials and committee evaluation is up and running. Applications are being received. 8 Board of Governors of the Colorado State University System Meeting Date: February 2, 2017 Report Item

PRESIDENT’S REPORT

I. ACADEMIC EXCELLENCE

A. Hasan School of Business to offer online MBA

The Hasan School of Business (HSB) has announced that beginning January 30, students will be able to earn a Master of Business Administration (MBA) in one year through a new online program administered through the University’s Office of Extended Studies. According to HSB MBA Director Dr. Kristyn White, the new online MBA will be one of the least expensive MBA programs in the nation and one of only a few online MBAs accredited by the Association to Advance Collegiate Schools of Business (AACSB) in Colorado. The program will provide a degree program taught by HSB faculty for significantly less than the average total cost for an MBA degree. White said the program will have rolling enrollment, meaning flexible start dates that are convenient for a student’s schedule as well as ambition.

B. ICR research announced

The Institute of Cannabis Research (ICR) has finalized the awards for cannabis-related research that will be conducted on the campus in the coming year, using Pueblo County and state funding. Currently, 10 CSU-Pueblo faculty are leading the research that is categorized by major projects, pilot studies, and professional development. They represent a variety of academic disciplines, including psychology, education, engineering, business, biology, and chemistry. Among the major projects are an examination of the effects of medicinal cannabinoids (CBD) on seizures in adults with medically refractory epilepsy, analysis of industrial hemp fibers in 3D-printing, and development of a cannabis growth and research infrastructure at the university. Some of the pilot studies include development of a novel method for extracting CBD from cannabis leaves and flowers, an analysis of the effects of CBD in the neural pathways that promote emotional learning and memory, an investigation of the role of endocannabinoid-induced metabolic changes on viral infections, and a study on K-12 education issues including building on the state’s most recent Colorado Healthy Kids survey data.

II. STUDENT ACCESS AND SUPPORT

A. 2017 Summer Smithsonian Internships available

CSU-Pueblo will send more students to Washington, D.C. next summer through a partnership with the Smithsonian Institution. Junior or senior students may now apply for

CSU-Pueblo – President’s Report

9 Board of Governors of the Colorado State University System Meeting Date: February 2, 2017 Report Item

the six available internships, which will occur May 30-July 1, 2017. The unpaid internships include housing covered by the university and a small stipend for expenses. Students also may earn up to three hours of internship credit for completing the experience. The 2016 summer placements included the National Museum of American History, the Archives of American Art, the National Postal Museum, and the Department of Emergency Management. Applications are due by January 20 and as part of the internship, students will be required to keep a weekly blog and give a formal presentation to the CSU System Board of Governors.

B. Forensics earns first tournament victory

The CSU-Pueblo Forensics Team won the open division of the 47th Annual Trapper Rendezvous held at Northwest Community College in Powell, WY, and a duo qualified for the National Parliamentary Tournament of Excellence (NPTE). The Trapper Rendezvous is the team’s first tournament championship under the direction of Kathryn Starkey.

III. DIVERSITY

A. Gonzales to speak as part of Native Voices exhibit

CSU-Pueblo has been selected in a competitive application process to host Native Voices: Native Peoples’ Concepts of Health and Illness, a traveling exhibition to U.S. libraries, from March 1 to April 13 in the Library and Academic Resources Center (LARC) Lobby. In association with the exhibit in the , University of Arizona Professor Patrisia Gonzales will share her expertise in indigenous ways of knowing and indigenous medicine beginning at 7 p.m. on March 9 in LARC 109. As one of 104 grant recipients selected from across the country, CSU-Pueblo will receive a $250 programming grant, virtual training, and publicity materials. Native Voices: Native Peoples’ Concepts of Health and Illness was displayed at the National Library of Medicine in Bethesda, Maryland, from 2011 to 2015. To learn more and view content from the exhibition, visit http://www.nlm.nih.gov/nativevoices.

V. COMMUNITY OUTREACH

A. Activist Bree Newsome to speak

A community organizer and activist who removed the confederate battle flag from the South Carolina State House will share her story and insights to kick off the Spring 2017 Semester at CSU-Pueblo. Distinguished Speaker Bree Newsome will appear at 7 p.m. on

CSU-Pueblo – President’s Report

10 Board of Governors of the Colorado State University System Meeting Date: February 2, 2017 Report Item

Tuesday, Jan. 31 in Life Sciences Auditorium 105. Sponsored by Student Engagement and Leadership through student fees, the event is open to the public at no charge. Born with an artist’s soul and spirit, Newsome has always been sensitive to the essential role that art and symbols play in shaping culture and consciousness. As she watched the funeral of Rev. Clementa Pinkney, one of nine people slaughtered in the name of white supremacy at Mother Emmanuel Church in Charleston, SC, she recognized the message being communicated clearly by the U.S. flag and the South Carolina state flag at half- mast while the Confederate flag remained fully furled. Refusing to accept the premise of this image – that white supremacy is supreme, untouchable and invincible – she scaled the 30-foot flagpole in front of the South Carolina statehouse and removed the “stars and bars” declaring, “This flag comes down today!”

VI. RESOURCE MANAGEMENT

A. Information Technology Updates

The new CSU-Pueblo website redesign and soft launch was completed in December, with a planned website polish and conclusion at the end of the spring semester. Additionally, the conversion of CSU-Pueblo On-line has been completed and is operational.

The CSU-Pueblo campus-wide network upgrade of both wired and wireless is on schedule, and will be completed by start of the fall 2018 semester. The new Modular Data Center will be online and functioning by February 2017. We also are in the planning stages of an email upgrade to bring all faculty and staff into Office 365.

Work is progressing toward obtaining CSU-Pueblo’s right-of-way along Nature Center Road in Pueblo to facilitate the installation of fiber optic cable to connect the Observatory to campus, per our NSF grant.

Additional campus buildings are ready for connection via the new fiber optic cable to the campus network utilizing the State of Colorado IT Infrastructure monies.

VII. SPECIAL REPORT – HSI AT CSU-PUEBLO

A. Highlights a. HSI performance comparison data with other HSI’s b. Hispanic graduation and retention improvements c. Campus programming and support of Hispanic students

CSU-Pueblo – President’s Report

Closing the Gap: CSU-Pueblo’s Success as a Hispanic Serving Institution

1 CSU-Pueblo was named one of 50 Best Schools12 for Latinos by Latino Leaders magazine…

… the only Colorado institution selected.

2 13 What does it mean to be an HSI?

 Federal designation: at least 25% of undergraduate enrollment is Hispanic PLUS various budgetary limitations and application process

. Recognizes the unique needs of this service population – not only by race/ethnicity but likelihood of first generation status, Pell eligibility, etc.

. Creates responsibilities beyond enrolling a diverse population – must serve and support them, with academic, social, and personal development

. Contributes to campus diversity and welcoming climate

. Provides opportunities for additional grant funds

3 14 Why was the designation created?

Closing the Gap – Access and Achievement

 Growing Hispanic population in the U.S. . 17% of the U.S. population is Hispanic (21% in CO) . 22% of the U.S. K-12 population is Hispanic (30% in CO) . 17% of the U.S. undergraduate population is Hispanic (16% in CO)

 Concerns related to higher education access and success for Hispanic students . Hispanic college enrollment traditionally lagged other groups (recent upswing) . Hispanic overrepresentation in two-year institutions . Completion remains a national issue: . 15% of Hispanics have a bachelor’s (36% of non-Hispanic whites) . National Latino/a 6-year graduation rate is 41%, 50% for Whites Sources: U.S. Census data, HACU 4 15 Six public HSIs in Colorado

 Two public, four-year . CSU-Pueblo and Adams State

 Four public, two-year . Aims Community College, Otero Junior College, Pueblo Community College, and Trinidad State Junior College

5 16 CSU-Pueblo Undergraduate Hispanic Enrollment

Source: CSU-Pueblo IR 6 17 CSU-Pueblo Performance Data

Increasing academic preparation of incoming Hispanic students

Source: CSU-Pueblo IR 7 18 CSU-Pueblo Performance Data

Increase in first-year retention of Hispanic students since 2011-2012

Source: CSU-Pueblo IR 8 CSU-Pueblo Performance Data 19 Hispanic student persistence remains strong in ensuing years

Source: CSU-Pueblo IR 9 20 CSU-Pueblo Performance Data

Hispanic graduation numbers increasing

Source: CSU-Pueblo IR 10 21 How Does CSU-Pueblo Compare?

IPEDS comparison group of 7 similar-size HSIs, including the one other CO 4-year and one approved peer institution

Total Student 6-Year Graduation 6-Year Graduation Retention* (All) (Hispanic)

CSU-Pueblo 63% 32% 27%

Other CO 4-year HSI 58% 23% 12%

Comparison group 63.7% 31.2% 26.3% mean

*IPEDS retention data not available by race/ethnicity

Source: IPEDS, Fall 2014 11 22 CSU-Pueblo HSI-related funding

Years Active Awarding Agency Grant Title Amount 2016-2021 (5 years) U.S. Dept. of Education CSU-Pueblo Communities to Build $5,954,245 STEM Engagement (C-BASE) Program

2015-2016 (1 year) Hispanic Association of CSU-Pueblo HACU/Solution $10,000 Colleges & Universities Generation Leadership in Climate Change Awareness Award 2015-2020 (5 years) U.S. Dept. of Education Mastering Academic Excellence, $2,621,569 Scholarship, Teaching, and Research Opportunities (MAESTRO) 2011-2016 (5 years) U.S. Dept. of Education Providing Opportunities to Excel $4,349,976 (PROPEL) 2010-2015 (5 years) U.S. Dept. of Education Promoting Post-baccalaureate $2,828,053 Opportunities for Hispanic Americans

$15.8 million 12 23 CSU-Pueblo Programming

MAESTRO Summer Scholars Program

 A new approach to student retention and success . Large percentage were Hispanic . Excellent results: about 95% of total AND Hispanic students retained

 Highlights and video will be presented today at lunch by:

Dr. Donna Souder, Executive Director, Center for Teaching & Learning and Dr. Derek Lopez, Director, Center for Academic Enrichment

13 24

Appendix

A 25 Other CSU-Pueblo Programming

Office of Diversity and Inclusion

 Trainings for families and students in both English and Spanish . Importance of college . Spanish-language orientation . Spanish translation support for parent campus visits/meetings (in development)

 Programming which engages Hispanic faculty with students throughout the year

 9 Hispanic-identified student organizations

A1 26 CSU-Pueblo Programming (cont.)

Other efforts

 Hispanic Heritage Month spotlights

 Community collaboration/outreach (LULAC, HACU, Grupo Mayas)

 CAMP (College Access Migrant Program) . 92% retention rate . More than 20 graduates to date

 Student Involvement . HACU national conference attendance (10 years) . Colorado LULAC Young Adult Council of the Year . Hispanic College Quiz Show (1 winner, 3 participants) A2 27 CSU-Pueblo Programming (cont.)

Additional HSI and First Generation initiatives in development

 Parent letters and process brochures for self-identified Hispanic and First Gen families; HSI benefits infographic for use at Hispanic-centric events

 Diversity-focused web content for prospective students – highlighting HSI benefits, support systems in place, and exploring First Gen populations on campus (Students, alums, faculty and staff)

 Campus First Gen Ambassadors and shared stories online; prospective student communications promoting this content

 Potential advisement re-structure A3 28

Section 3 Audit and Finance Committee

29 BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY SYSTEM AUDIT/FINANCE COMMITTEE MEETING AGENDA February 2, 2017

Audit Issues

1. Discussion/Presentation – FY 2016 Audit Results – BKD 20 min.

2. Discussion/Presentation – Status of FY 2017 Audit Plan 5 min.

3. Discussion/Presentation – Audits issued since last Committee meeting 5 min.

4. Discussion/Presentation – Report of overdue recommendations 5 min.

Finance Issues

5. Discussion/Presentation – FY 2018 Campus Incremental Budget/Tuition update 15 min.

6. Discussion/Presentation – Quarterly Financials – 2nd Quarter 10 min.

7. Presentation/Action Item – Approval of Changes to the CSU System Debt Policy 5 min.

8. Discussion/Presentation – Short-term Financing Options 10 min.

February 2017 Audit/Finance Committee Agenda

Finance & Audit Committee Presentation February 2, 2017 31 Item 1 FY 2016 Audit Results

Presented by BKD 32

Colorado State University System Financial Statements and Independent Auditor’s Reports Financial Audit Years Ended June 30, 2016 and 2015 Compliance Audit Year Ended June 30, 2016

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LEGISLATIVE AUDIT COMMITTEE

Representative Dan Nordberg – Representative Dianne Primavera – Chair Vice Chair

Senator Randy Baumgardner Representative Tracy Kraft-Tharp

Senator Rollie Heath Senator Tim Neville

Senator Cheri Jahn Representative Lori Saine

OFFICE OF THE STATE AUDITOR STAFF

Dianne E. Ray State Auditor

Kerri Hunter Deputy State Auditor

Marisa Neff Contract Monitor

BKD, LLP Contractor

AN ELECTRONIC VERSION OF THIS REPORT IS AVAILABLE AT WWW.COLORADO.GOV/AUDITOR

A BOUND REPORT MAY BE OBTAINED BY CALLING THE OFFICE OF THE STATE AUDITOR 303.869.2800

PLEASE REFER TO REPORT NUMBER 1616F-A WHEN REQUESTING THIS REPORT

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Members of the Legislative Audit Committee:

We have completed the financial statement audit of the Colorado State University System as of and for the year ended June 30, 2016. Our audit was conducted in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

We were engaged to conduct our audit pursuant to Section 2-3-103, C.R.S., which authorizes the State Auditor to conduct or cause to be conducted audits of all departments, institutions and agencies of state government. The reports which we have issued as a result of this engagement are set forth in the table of contents which follows.

December 9, 2016

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COLORADO STATE UNIVERSITY SYSTEM Table of Contents

...... Page

Report Summary ...... 1 Recommendation Locator ...... 3 Financial and Compliance Audit Report Section: Description of the Colorado State University System ...... 5 Audit Findings and Recommendations ...... 9 Disposition of Prior Audit Recommendations ...... 16 Independent Auditor’s Report ...... 17 Management’s Discussion and Analysis (Unaudited) ...... 21 Financial Statements: Statements of Net Position ...... 32 Statements of Financial Position – Discretely Presented Component Unit ...... 34 Statements of Revenues, Expenses and Changes in Net Position ...... 38 Statements of Activities – Discretely Presented Component Unit ...... 40 Statements of Cash Flows ...... 43 Notes to Basic Financial Statements ...... 47 Required Supplemental Information: Colorado State University System Schedule of Proportionate Share of the Net Pension Liability and Schedule of Contributions (Unaudited) ...... 96 Colorado State University Retiree Medical Premium Refund Plan (DCP Refund), PERA Subsidy, Umbrella Rx (Rx Subsidy) and Long-Term Disability Income Replacement Plan (LTD Income Replacement) Schedules of Funding Progress (Unaudited) ...... 97

Colorado State University Retiree Medical Premium Refund Plan (DCP Refund), PERA Subsidy, Umbrella Rx (Rx Subsidy) and Long-Term Disability Income Replacement Plan (LTD Income Replacement) Schedules of Employer Contributions (Unaudited) ...... 98

Supplemental Information: Colorado State University Retiree Medical Premium Refund Plan (DCP Refund), PERA Subsidy, Umbrella Rx (Rx Subsidy) and Long-Term Disability Income Replacement Plan (LTD Income Replacement) Statement of Plan Net Assets and Statement of Changes in Plan Net Assets (Unaudited) ...... 100 39

COLORADO STATE UNIVERSITY SYSTEM Table of Contents

Page Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards...... 103 Independent Auditor’s Audit Committee Communication ...... 105 Revenue Bonds’ Earnings Requirements Section Independent Auditor’s Report on Bond Compliance ...... 109 Revenue Bonds’ Earnings Requirement Schedules (Unaudited) ...... 111

State-Funded Student Financial Assistance Programs Financial Audit Report Section Introduction ...... 114 Independent Auditor’s Report on the Statement of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs ...... 117 Statement of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs ...... 119 Notes to Statement of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs ...... 121 Schedule of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs – Colorado State University ...... 122 Schedule of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs – Colorado State University – Pueblo ...... 123 Independent Auditor’s Report on Compliance and Internal Control Over Compliance with Requirements That Could Have a Direct and Material Effect on Each State-Funded Student Financial Assistance Program ...... 125 Schedule of Allocations, Expenditures, and Reversion of the State-Funded Student Financial Assistance Programs Schedule of Findings and Questioned Costs………………...127

40 COLORADO STATE UNIVERSITY SYSTEM Report Summary Year Ended June 30, 2016

Purposes and Scope of Audit

The Office of the State Auditor engaged BKD, LLP (BKD) to conduct a financial and compliance audit of the Colorado State University System (the System) for the year ended June 30, 2016. BKD performed the audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. The audits of the Colorado State University Foundation and the Colorado State University – Pueblo Foundation, the discretely presented component units of the System, were not performed in accordance with the standards applicable to financial audits contained in Government Auditing Standards.

The purposes and scope of the audit were to:

 Express opinions on the financial statements of the System as of and for the years ended June 30, 2016 and 2015, including consideration of internal control over financial reporting as required by auditing standards generally accepted in the United States of America and Government Auditing Standards for the year ended June 30, 2016.

 Evaluate compliance with certain provisions of laws, regulations, contracts and grants governing the expenditure of federal funds for the year ended June 30, 2016.

 Issue a report on the System’s internal control over financial reporting and on compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters based on our audit of the financial statements performed in accordance with Government Auditing Standards for the year ended June 30, 2016.

 Report on the System’s compliance with applicable bond covenants.

 Express an opinion on the Statement of Allocations, Expenditures, and Reversions of the State- Funded Student Financial Assistance Programs of the System for the year ended June 30, 2016.

 Issue a report on compliance and internal control over compliance with the requirements applicable to each state funded student financial assistance program for the year ended June 30, 2016.

 Evaluate progress in implementing prior year audit recommendations. The System’s schedule of expenditures of federal awards and applicable opinions thereon, issued by the Office of the State Auditor, are included in the Statewide Single Audit Report issued under separate cover.

Audit Opinions and Reports The independent auditor’s reports included herein expressed unmodified opinions on the System’s financial statements as of and for the years ended June 30, 2016 and 2015. Three material weaknesses in internal control over compliance were identified. We noted areas in which the System could improve its compliance procedures. This area is discussed in the Auditor’s Findings and Recommendations section of this report.

(Continued)

1 41

COLORADO STATE UNIVERSITY SYSTEM Report Summary Year Ended June 30, 2016

Significant Audit Adjustment

There were multiple proposed audit adjustments identified during the audit related to CSU System. These audit adjustments are detailed on pages 106 and 107.

Summary of Audit Recommendations

Expenditures of Federal Awards

There were three findings related to our testing of Federal Student Financial Aid Cluster expenditures under Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Single Audit) related to the following: (a) CSU – System submitted students’ status changes to NSLDS after the 60-day notice requirement and did not submit errors identified by NSLDS within the required 15 business-day timeframe; (b) CSU – Pueblo did not report information accurately or timely for Pell grant recipients; and (c) CSU – Pueblo did not notify students of aid disbursed or the right to cancel all or portion of the loan disbursement within 30 days of disbursing funds.

Summary of Progress in Implementing Prior Audit Recommendations

For the Fiscal Year 2016 audit, we performed test work to determine the disposition of the three prior year recommendations relating to Fiscal Year 2015. We found that two of the three recommendations for the fiscal year ended June 30, 2015, were not implemented, while the other one was implemented. The outstanding recommendation relates to internal controls over compliance as it relates to the Student Financial Aid Cluster. The one recommendation determined to be implemented as of June 30, 2016 related to CSU – Pueblo’s compliance with reconciliation of institutional financial records and federal Common Origination and Disbursement student account statements.

2 42

COLORADO STATE UNIVERSITY SYSTEM Recommendation Locator Year Ended June 30, 2016

Recommendation Page Implementation Recommendation Summary Response Number Number Date

1 11 Colorado State University System should Agree CSU-Global - improve internal controls over Student Financial December 2016; Aid Pell and Direct Loan Program enrollment CSU-Pueblo reporting to the National Student Loan Data implemented System (NSLDS) by implementing policies and December 2016; procedures to ensure participating student's CSU implemented enrollment information is reported to NSLDS June 2017 within 60 days for all students with a change in enrollment occurring during the school year. Specifically, the policies and procedures should include steps to follow up with the National Student Clearinghouse and NSLDS, as appropriate, to resolve issues if files are not being submitted in a timely manner. In addition, we recommend that the University work with the National Student Clearinghouse to identify and resolve errors noted on roster files and resubmit corrections with the required 15-day timeframe.

2 13 Colorado State University – Pueblo should Agree January 2016 ensure that federal Pell grant reporting is accurate and performed timely by reviewing the frequency and accuracy of reporting to ensure that the disbursement date reflected by CSU- Pueblo agrees to the date reported to the federal Department of Education through the Common Origination and Disbursement System.

3 15 Colorado State University – Pueblo should Agree November 2016 ensure it complies with notification requirements for the Direct Loan program by developing formal procedures outlining the requirement for staff to check the indicator box in PowerFAIDS during the student financial aid disbursement process in order to provide notifications within 30 days of a disbursement occurring to a student's ledger account. CSU-Pueblo should also ensure that staff are sufficiently trained on the procedures.

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COLORADO STATE UNIVERSITY SYSTEM Recommendation Locator Year Ended June 30, 2016

Recommendation Page Implementation Recommendation Summary Response Number Number Date

4 129 Colorado State University-Pueblo should AgreeNovember 2016 ensure it complies with State-Funded Student Financial Aid, Colorado Work- Study Program requirements. This should include researching and resolving the system issues identified through our audit to ensure Work-Study Program disbursements are only provided to eligible students up to the student's maximum award amount. In addition, until the system issues are resolved, CSU- Pueblo should implement a monitoring process to ensure Work-Study Program disbursements are not provided to an ineligible student or in excess of the student's award amount.

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COLORADO STATE UNIVERSITY SYSTEM Description of the Colorado State University System Year Ended June 30, 2016

Organization and Administration The institutions that compose the Colorado State University System (the System) are established in Title 23, C.R.S. The Board of Governors (the Board) has control and supervision of three distinct institutions: Colorado State University (a land-grant university), Colorado State University – Pueblo (a regional, comprehensive university) and Colorado State University – Global Campus (an online university).

The 15-member Board consists of:

 Nine voting members appointed by the Governor and confirmed by the Senate for four-year terms  Six advisory members representing the student bodies and the faculty councils for each of the three institutions, elected for one-year terms

The Board administers the board of governors of the Colorado State University System Fund located in the State Treasury. The Board is authorized to set tuition, pay expenses, and hire officials. The chief academic and administrative officers are the Chancellor of the Colorado State University System and the President of each institution.

Colorado State University

In 1870, the Territorial Council and House of Representatives of the Territory of Colorado created the Agricultural College of Colorado (the College). When the Territory became a state in 1876, the College was placed under the governance of the State Board of Agriculture.

The College began admitting its first students in 1879. It was also designated that year as Colorado’s land-grant college and recipient of federal endowment support under the Morrill Act of 1862. Subsequent federal legislation led to the establishment of the Agricultural Experiment Station and the Extension Service of the College.

State legislation also made the College responsible for the Colorado State Forest Service. Following several name changes, the College became Colorado State University in 1957. In this report, the terms Colorado State University and CSU refer to Colorado State University – Fort Collins.

Resident Instruction

The following eight colleges offer more than 72 undergraduate degrees, 100 Academic Graduate Degrees and 27 Professional Graduate Degrees including Doctor of Veterinary Medicine:

 College of Agricultural Sciences  College of Health and Human Sciences  College of Liberal Arts  College of Business  College of Engineering  Warner College of Natural Resources  College of Natural Sciences  College of Veterinary Medicine and Biomedical Sciences

Agricultural Experiment Station

The Agricultural Experiment Station provides a basis for agricultural research and study programs on the Fort Collins campus and at nine research centers located throughout the State. The mission of the Agricultural Experiment Station

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COLORADO STATE UNIVERSITY SYSTEM Description of the Colorado State University System Year Ended June 30, 2016

is to conduct research that addresses the economic viability, environmental sustainability, and social acceptability of activities impacting agriculture, natural resources, and consumers in Colorado. It is a public service organization that disseminates the results of its research to the public through CSU Extension and various publications and conferences.

CSU Extension

The mission of CSU Extension is to provide information and education, and encourage the application of research-based knowledge in response to local, state, and national issues affecting individuals, youth, families, agricultural enterprises, and communities of Colorado. CSU Extension disseminates among the people of Colorado useful and practical information on subjects related to (a) agricultural production, marketing, and natural resources; (b) family living; (c) 4- H and other youth activities; and (d) rural and community development. The location of professional staff throughout the State permits CSU Extension to respond to the needs of local communities.

Colorado State Forest Service

The Colorado State Forest Service provides management, protection, and utilization of Colorado State Forest lands.

Colorado State University – Pueblo

Colorado State University – Pueblo was incorporated in 1935 as Southern Colorado Junior College. One year later, local citizens decided to support the institution with county taxes. They organized the Pueblo Junior College District and the school was renamed Pueblo Junior College. In 1951, Pueblo Junior College became the first accredited junior college in Colorado.

In 1963, Colorado’s General Assembly enacted legislation changing Pueblo Junior College to a four-year institution— Southern Colorado State College—to be governed by the board of trustees of state colleges. By then, four new buildings had been erected on the new campus north of Pueblo’s Belmont residential district. On July 1, 1975, the State Legislature granted the institution university status. Three years later, the Colorado State Board of Agriculture assumed governance of the University of Southern Colorado. In July 2003, the university was renamed Colorado State University – Pueblo.

Colorado State University – Pueblo (CSU-Pueblo) is accredited at the bachelor’s and master’s levels. CSU-Pueblo is a regional, comprehensive university, with moderately selective admissions standards displaying excellence in teaching and learning. CSU-Pueblo emphasizes professional, career-oriented, and applied programs at the undergraduate and graduate levels while maintaining strong programs in the liberal arts and sciences. CSU-Pueblo has received the federal government’s designation as a Hispanic Serving Institution granted to universities with at least 25 percent of the student population of Hispanic descent.

Colorado State University – Global Campus

Colorado State University – Global Campus (CSU-Global) was incorporated in 2008. CSU-Global is a baccalaureate and graduate online university with the mission in Colorado of offering baccalaureate degree programs for nontraditional students in partnership with the Colorado community college system and selected master-level graduate programs. The mission of CSU-Global is to offer on-line programs that are career-relevant and tailored to existing and emerging industry and occupational trends within Colorado. CSU-Global will cater to working adults and other nontraditional students who already have college credit or a two-year degree and want to complete their bachelor’s and/or master’s degrees. CSU-Global admitted its first students during the fall 2008 semester.

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COLORADO STATE UNIVERSITY SYSTEM Description of the Colorado State University System Year Ended June 30, 2016

Enrollment and Faculty

Enrollment and faculty and staff information is presented below and was obtained from institutional analysis and the System’s Factbooks.

CSU reports full-time equivalent (FTE) student, faculty, and staff for three continuous fiscal years as follows:

Colorado State University Full-Time Equivalent (FTE) Student Enrollment ResidentNonresidentTotal Fiscal year: 2015-201617,921 6,709 24,630 2014-201517,733 6,188 23,921 2013-201418,305 5,694 23,999

Colorado State University Full-Time Equivalent (FTE) Faculty and Staff FacultyStaffTotal Fiscal year: 2015-20161,639 5,132 6,771 2014-2015*1,611 5,026 6,637 2013-2014*1,587 4,831 6,418

* Fiscal Year 2014 and 2015 FTE numbers have been revised to reflect employees who are on a 12-month appointment that had previously been calculated on a 9-month basis.

CSU-Pueblo reports full-time equivalent (FTE) student, faculty, and staff for three continuous fiscal years as follows:

Colorado State University - Pueblo Full-Time Equivalent (FTE) Student Enrollment Resident Nonresident Total Fiscal year: 2015-2016 3,323 550 3,873 2014-2015 3,404 555 3,959 2013-2014 3,475 499 3,974

Colorado State University - Pueblo Full-Time Equivalent (FTE) Faculty and Staff Faculty Staff Total Fiscal year: 2015-2016 203 304 507 2014-2015 200 313 513 2013-2014 222 315 537

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COLORADO STATE UNIVERSITY SYSTEM Description of the Colorado State University System Year Ended June 30, 2016

CSU-Global reports full-time equivalent (FTE) student, faculty, and staff for three continuous fiscal years as follows:

Colorado State University - Global Campus Full-Time Equivalent (FTE) Student Enrollment ResidentNonresidentTotal Fiscal year: 2015-20163,155 4,247 7,402 2014-20152,771 3,323 6,094 2013-20142,502 2,460 4,962

Colorado State University - Global Campus Full-Time Equivalent (FTE) Faculty and Staff FacultyStaffTotal Fiscal year: 2015-2016 273 157 430 2014-2015* 259 144 403 2013-2014* 240 134 374

* Fiscal Year 2014 and 2015 Faculty FTE numbers have been revised as a result of a change in the methodology in the calculation.

Colorado State University Foundation Colorado State University-Pueblo Foundation Colorado State University System Foundation

The System’s reporting entities include Colorado State University Foundation (CSUF), Colorado State University- Pueblo Foundation (CSU-Pueblo Foundation), and Colorado State University System Foundation (CSUS Foundation) as discretely presented reporting units. These Foundations are legally separate, tax-exempt entities that were established to receive, manage, and invest philanthropic gifts on behalf of CSU and CSU-Pueblo. The CSUS Foundation was created to accept transfers of intellectual property of the System and distribute money or issue grants to fund innovation and System initiatives, investment in new technology for the benefit of the System, and improvement of access and affordability for students of the System. Colorado State University Foundation is governed by its board of directors, which includes five voting members and three ex-officio nonvoting members. Twenty-seven trustees of the CSU-Pueblo Foundation are elected by members of the CSU-Pueblo Foundation. No person who is an employee of the University is eligible to serve as an officer of the Foundation or as a voting board member. The officers of the CSUS Foundation are appointed by the board of directors which consists of three CSU directors and four independent directors.

48 COLORADO STATE UNIVERSITY SYSTEM Audit Findings and Recommendations Year Ended June 30, 2016

INTERNAL CONTROL OVER COMPLIANCE

In planning and performing our audit of compliance, we considered the System’s internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures and to test internal control over compliance in accordance with federal Uniform Guidance.

Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all deficiencies, significant deficiencies or material weaknesses have been identified.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis.

A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected and corrected on a timely basis.

A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

We observed the following matters that we consider to be material weaknesses.

Material Noncompliance and Material Weakness – Internal Control Over Compliance Enrollment Reporting (Student Financial Aid Cluster): Colorado State University System

Enrollment Reporting (Student Financial Aid Cluster)

The federal Department of Education (USDE) requires institutions of higher education who are receiving Student Financial Aid funds to report enrollment information within specified timeframes to the USDE through its central database for student aid, the National Student Loan Data System, or NSLDS. Enrollment reporting, including submission of “roster files” and enrollment status changes, assists the federal government in management of the Pell and Direct Loan programs, which are programs within the Student Financial Aid Cluster. CSU System submits roster files to NSLDS via a third-party servicer, the National Student Clearinghouse (Clearinghouse), based on a predetermined schedule.

During Fiscal Year 2016, CSU – System issued approximately $305 million in federal Student Financial Aid during the year, which included approximately $40 million and $259 million of Pell and Direct Loan funding, respectively.

49 COLORADO STATE UNIVERSITY SYSTEM Audit Findings and Recommendations Year Ended June 30, 2016

What was the purpose of our audit work and what work was performed?

The purpose of our audit work was to determine whether the CSU-System complied with enrollment reporting requirements regarding student attendance status changes for Pell and Direct Loan programs during Fiscal Year 2016.

We reviewed a sample of 51 out of approximately 21,000 CSU-System students whose attendance information was reported to NSLDS during Fiscal Year 2016 for compliance with the Student Financial Aid Cluster enrollment reporting requirements. For each student in our sample, we compared information within CSU-System’s Financial Aid system to information contained on the NSLDS website for the specific enrollment status change selected. In addition, we reviewed the Enrollment Reporting Summary Report (SCHER1) provided by NSLDS to CSU-System for Fiscal Year 2016 to determine whether the CSU-System addressed errors identified by the NSLDS and submitted roster files within the required timeframes during the year. The SCHER1 report detailed the dates enrollment reporting roster files were sent and returned by CSU-System during the year; the number and date of errors, as well as online updates; and the number of late enrollment reporting notifications that were sent to the CSU-System for overdue enrollment reporting rosters

How were the results of the audit work measured?

Under the federal Pell grant and Direct Loan program requirements [Section 34 Code of Federal Regulations (C.F.R.) 690.83(b)(2) and 34 C.F.R. 685.309], a school must report any enrollment change for a participating student within 30 days of the change, unless a roster file will be submitted within 60 days to the NSLDS. A school must report a change in a student’s enrollment status to NSLDS when there is a (a) reduction or increase in the student’s attendance levels, (b) graduation, (c) withdrawal, and/or (d) a student who has been accepted for enrollment but never attended. Institutions are responsible for timely reporting whether they report directly or via a third-party servicer. We measured the results of our testing against a 60-day timeframe because the CSU-System submits roster files on a scheduled 60-day timeframe under Student Financial Aid guidelines.

The federal Department of Education issued final revised regulations that were effective on July 1, 2014, that changed the nature and increased the frequency of enrollment reporting to NSLDS. Specifically, the regulations provided that schools must respond to the Department of Education’s request for enrollment information (1) within a timeframe specified by the Department of Education, (2) in a manner specified by the Secretary, and (3) in a format specified by the Secretary. Under the authority of those regulations, at least every 30 days, the NSLDS transmits a file containing student enrollment errors to each participating institution; each institution must correct the information and return the Enrollment reporting roster file to the USDE within 15 days of receipt.

What problem did the audit work identify?

We determined that CSU-System did not report status changes timely to NSLDS for 16 of the 51 students (31 percent) tested. The 16 students’ enrollment status information was submitted 5 to 59 days beyond the 60-day requirement. The scheduled enrollment files were transmitted to the Clearinghouse, the third-party servicer, timely; however, due to issues at the Clearinghouse, the information was not reported by the Clearinghouse to NSLDS timely. Additionally, we determined that 10 of the 51 students (20 percent) did not have the correct effective date for the status change reported. For reporting purposes, the effective date is the date when the most recently reported enrollment status took effect.

50 COLORADO STATE UNIVERSITY SYSTEM Audit Findings and Recommendations Year Ended June 30, 2016

We also determined that the errors identified by NSLDS were not resubmitted by CSU-System within the required 15 business-day timeframe for any month of the fiscal year. In some instances, errors were reviewed within the month; however, some errors continued to roll from month to month during the year.

Why did this problem occur?

The CSU-System does not have policies and procedures in place to ensure that student enrollment data is reported to NSLDS timely, as required. In addition, CSU-System staff reported that they did not have a formal follow-up or monitoring process in place to ensure that information reported to the Clearinghouse has been processed and submitted through the NSLDS within the 15-day timeframe.

CSU-System staff indicated that they believed that the Clearinghouse was resolving errors identified by the NSLDS on the submitted roster files and as such, did not perform procedures to clear the errors.

Why does this problem matter?

Enrollment reporting assists lenders in the determination of whether a borrower should be moved into loan repayment status or if they are eligible for an in-school deferment. Thus, if CSU-System fails to meet the required reporting timelines or submits inaccurate information to NSLDS, the borrowers’ repayment responsibilities may be reported incorrectly and result in either a lack of timely repayments by the borrower or the student being inappropriately moved into loan repayment status.

CSU-System also risks federal disallowances due to its non-compliance with the student enrollment reporting requirements for the federal Student Financial Aid grant.

(CFDA No. 84.063 and 84.268; Federal Pell Grant Program and Federal Direct Student Loans. Classification of Finding: Material Weakness and Material Noncompliance; Total known questioned costs of $0).

Recommendation No. 1:

Colorado State University – System should improve internal controls over Student Financial Aid Pell and Direct Loan Program enrollment reporting to the National Student Loan Data System (NSLDS) by:

a. Implementing policies and procedures to ensure participating students’ enrollment information is reported to NSLDS within 60 days for all students with a change in enrollment occurring during the school year. Specifically, the policies and procedures should include steps to follow up with the National Student Clearinghouse and NSLDS, as appropriate, to resolve issues if files are not being submitted in a timely manner. b. Working with the National Student Clearinghouse to identify and resolve errors noted on roster files and resubmit corrections within the required 15 business-day timeframe.

51 COLORADO STATE UNIVERSITY SYSTEM Audit Findings and Recommendations Year Ended June 30, 2016

Colorado State University System Response:

Agree. CSU-Global - effective December 2016, will discontinue the relationship with the National Student Clearinghouse (NSC) and will report to NSLDS directly. This will ensure compliance with deadlines, as status changes and 15-day corrections were submitted timely to NSC by CSU-Global, but NSC did not process timely. CSU-Global will implement the following:  Each month after term census, CSU-Global will pull the enrollment data from the student information system, and submit directly to NSLDS through the online Enrollment Submittal tool.  Submitting data directly through the Enrollment Submittal tool will allow the university to validate files and make any needed corrections to ensure the accuracy of the enrollment data.  CSU-Global will also utilize the available online reporting tools to ensure that all the student data elements are reported timely and accurately.

CSU-Pueblo - In February 2016, the Financial Aid and Registrar's Office implemented a process to ensure enrollment files were being submitted in a timely manner between the NSC and NSLDS. This process reports enrollment during the first week of class, and every three weeks through the end of the semester. Effective December 2016, a written policy will be developed to ensure that errors noted on the roster files are reviewed, processed, and resubmitted to NSC and NSLDS within the required time frame.

CSU-Fort Collins - Effective October 2015, CSU-Fort Collins implemented internal compliance processes to monitor and correct errors in the response files received from NSC. CSU-Fort Collins submitted timely status changes to NSC, but NSC did not always process the changes timely. Therefore, effective June 2017, CSU-Fort Collins will continue to refine these process by developing additional control mechanisms through creating a report of status changes to ensure they are submitted to NSC and NSLDS within the required timeframe.

Implementation Date – CSU-Global – December 2016; CSU-Pueblo – Implemented December 2016; CSU – Implemented June 2017.

Material Noncompliance and Material Weakness – Internal Control Over Compliance Reporting - Common Origination and Disbursement (COD) System (Student Financial Aid Cluster): Colorado State University System – Pueblo

CSU-Pueblo submits Pell grant payment data on a weekly basis to the U.S. Department of Education's Common Origination and Disbursement (COD) system. The information submitted on a weekly basis must include disbursement information, including disbursement amount and date of disbursement, and must agree to the student ledgers maintained by CSU-Pueblo. During Fiscal Year 2016, CSU-Pueblo issued approximately $32 million in Student Financial Aid to its students during the year, which included approximately $8 million of Pell funding.

What was the purpose of the audit work and what work was performed?

The purpose of our testing was to determine whether CSU-Pueblo complied with Common Origination and Disbursement (COD) System reporting requirements for the Pell grant.

We reviewed a sample of 20 out of approximately 2,000 CSU-Pueblo students awarded Pell grants during Fiscal Year 2016 for compliance with COD reporting requirements. We reviewed each sample for all semesters of the fiscal year and compared the disbursement information reported to COD to student ledger cards to determine whether the information agreed and whether CSU-Pueblo met reporting timeframes specified by Pell grant requirements.

52 COLORADO STATE UNIVERSITY SYSTEM Audit Findings and Recommendations Year Ended June 30, 2016

In addition, we determined CSU-Pueblo’s progress in implementing our prior audit recommendation related to the COD system reporting requirements for the Pell grant. Specifically, we recommended that CSU-Pueblo ensure that federal Pell grant reporting is accurate and performed timely by adding a control to review the frequency and accuracy of reporting, including that the disbursement date reflected by the school agrees to the date reported to COD. CSU-Pueblo agreed with our recommendation and indicated it would revise its disbursement processes and procedures, continue to reconcile Pell grant information monthly, and correct identified errors to ensure disbursements were properly reported.

How were the results of the audit work measured?

Under the federal Pell grant program requirements [34 C.F.R. 668.164(a)(1)], a participating institution shall establish and maintain, on a current basis, any application for all federal funded Student Financial Aid (including Pell) and program records that document the institution’s disbursement of federal financial aid. An institution is considered to make a disbursement of federal funds on the date that the institution credits a student’s account or pays a student or parent directly. Additionally, an institution must report and/or update COD disbursement records no later than 15 days after making the disbursement or becoming aware of the need to adjust a student’s previously reported disbursement.

What problem did the audit work identify?

We determined that 11 of the 20 students’ (55 percent) disbursement dates reported to USDE through the COD did not agree to the actual disbursement date noted on the student ledger. Specifically, for these 11 students, the disbursement date applicable to each student’s Fall 2015 semester reported to USDE was up to four days after the actual disbursement date noted on the student account. This error only occurred in the Fall 2015 semester. All 20 students’ actual disbursement dates for the Spring 2016 semester agreed to the student ledger.

Why did the problem occur?

During the Fall 2015 semester, CSU-Pueblo did not have adequate controls, such as reviews surrounding the frequency and adequacy of reporting, in place to ensure that the disbursement date reported to COD agreed to the actual disbursement date per the student ledger. According to CSU-Pueblo staff and our testing of Spring 2016 disbursements, this issue was corrected for the Spring 2016 semester as a result of the 2015 audit finding. Fall 2015 Pell disbursements had already been made when the 2015 audit finding was identified and thus, CSU-Pueblo staff reported that they were unable to correct this issue until Spring 2016.

Why does this problem matter?

CSU-Pueblo risks federal disallowances due to its non-compliance with the Pell COD reporting requirements. Further, because several other Student Financial Aid grant requirements are associated with the reported disbursement date, CSU-Pueblo may also risk additional federal disallowances.

(CFDA No. 84.063; Federal Pell Grant Program. Classification of Finding: Material Weakness and Material Noncompliance; Total known questioned costs of $0).

Recommendation No. 2:

CSU–Pueblo should ensure that federal Pell grant reporting is accurate and performed timely by reviewing the frequency and accuracy of reporting to ensure that the disbursement date reflected by CSU-Pueblo agrees to the date reported to the federal Department of Education through the Common Origination and Disbursement System.

53 COLORADO STATE UNIVERSITY SYSTEM Audit Findings and Recommendations Year Ended June 30, 2016

Colorado State University – Pueblo Response:

Agree. In Fall 2015, CSU-Pueblo identified that an internal date change was occurring within PowerFAIDS when submitting files to Common Origination and Distribution System that caused the dates to be misreported. CSU- Pueblo corrected this issue by updating our disbursement procedure to include the submission of disbursement files to COD the same day that disbursement occurs. This was corrected November 2015 effective for the Spring semester, and no additional findings were discovered after this date.

Implementation Date – January 2016

Material Noncompliance and Material Weakness – Internal Control Over Compliance-Special Tests and Provisions - Disbursements To or On Behalf of Students (Direct Loan) (Student Financial Aid Cluster): Colorado State University System – Pueblo

Each time a student receives a disbursement of Student Financial Aid funds credited directly to his or her student ledger account within the University financial system, CSU-Pueblo is required to notify the student or the student’s parent, as applicable, via letter or email of specific information regarding the disbursement, including the student’s right to cancel all or a portion of the loan. CSU-Pueblo reported that staff generate the required notifications during the financial aid disbursement process by checking an indicator box within the Student Financial Aid Software (PowerFAIDS). Once the indicator box is checked, PowerFAIDS sends an email or letter to the student notifying them of the disbursement and the student’s right to cancel the loan. These notifications are generated by and maintained within the PowerFAIDS system. During Fiscal Year 2016, CSU-Pueblo issued approximately $19 million of Direct Loan funding.

What was the purpose of the audit work and what work was performed?

The purpose of our testing was to determine whether CSU-Pueblo complied with the federal requirements for disbursements to or on behalf of students for the federal Direct Loan programs. We reviewed a sample of 3 out of approximately 3,000 CSU-Pueblo students awarded Direct Loans during Fiscal Year 2016 to determine whether CSU-Pueblo made timely and appropriate notifications to students regarding their Direct Loan disbursements.

How were the results of the audit work measured?

Under the federal Direct Loan program requirements [Section 34 Code of Federal Regulations (C.F.R.) 668.165(a)], an institution must notify the student or parent, in writing, within 30 days when a disbursement is made to the student’s ledger account of (1) the date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan.

What problem did the audit work identify?

We determined that CSU-Pueblo did not notify the three students in our sample regarding their Direct Loan disbursements within 30 days of disbursing funds to the student’s ledger account during Fiscal Year 2016. Based on further discussions with CSU-Pueblo staff, we determined that notifications were not sent by CSU-Pueblo for the fall semester for any students. While some notifications for spring aid were sent out in April 2016, the remaining notifications for the spring semester were not sent out until June 30, 2016, or approximately three to five months after the disbursements occurred. As a result, students who received credits to their student accounts either were not directly notified of the credits or rights to cancel the loans, or were notified after the end of the semester.

54 COLORADO STATE UNIVERSITY SYSTEM Audit Findings and Recommendations Year Ended June 30, 2016

Why did the problem occur?

CSU-Pueblo did not have procedures in place during Fiscal Year 2016 to ensure that staff checked the appropriate box in PowerFAIDS, which resulted in notifications not being sent.

Why does this problem matter?

Due to CSU-Pueblo’s failure to ensure students were notified of Direct Loan requirements and the allowability of canceling the loans, students may have incurred loans that they did not want. Further, because CSU-Pueblo failed to follow federal requirements for the Direct Loan program, they risk having to repay federal Direct Loan funds to the USDE.

(CFDA No. 84.268; Federal Direct Student Loans (Direct Loans). Classification of Finding: Material Weakness and Material Noncompliance; Total known questioned costs of $0).

Recommendation No. 3:

CSU-Pueblo should ensure it complies with notification requirements for the Direct Loan program by developing formal procedures outlining the requirement for staff to check the indicator box in PowerFAIDS during the student financial aid disbursement process in order to provide notifications within 30 days of a disbursement occurring to a student’s ledger account. CSU-Pueblo should also ensure that staff are sufficiently trained on the procedures.

Colorado State University – Pueblo Response:

Agree. CSU-Pueblo's Financial Aid Office designed and implemented an updated policy and procedure to ensure that the indicator box in PowerFAIDS is checked during the disbursement process so that notifications, within 30 days, of Direct Loan Disbursements are sent in conjunction with the loan funds crediting the students' accounts during the disbursement process. The new disbursement process training is currently happening with staff members and the Associate Director of the CSU-Pueblo's Financial Aid Office.

Implementation Date – November 2016.

COLORADO STATE UNIVERSITY SYSTEM Disposition of Prior Audit Recommendations Year Ended June 30, 2016

Summary of Progress in Implementing Prior Audit Recommendations

Following are the audit recommendations for the year ended June 30, 2015. The disposition of these audit recommendations as of June 30, 2016 was as follows:

Recommendation Recommendation Disposition Number

2015-042 Colorado State University-Pueblo Not implemented. See should implement policies and Recommendation #1 for fiscal year procedures to ensure the enrollment 2016. reporting roster file is reported NSLDS within required timeframes for all students with a change in enrollment occurring during the school year. Specifically, the policies and procedures should include a monitoring process with required steps to follow up with the National Student Clearinghouse and NSLDS if files are not being submitted in a timely manner.

2015-043 Colorado State University-Pueblo Not implemented. See should ensure that federal Pell grant Recommendation #2 for fiscal year reporting is accurate and performed 2016. timely by adding a control to review the frequency and accuracy of reporting to help ensure that the disbursement date reflected by the school agree to the date reported to COD.

2015-044 Colorado State University-Pueblo Implemented in fiscal year 2016. should establish a process for reconciling Federal Direct Loan payment information contained in CSU- Pueblo's financial records and COD School Account Statements data files on a monthly basis. Any differences identified should be investigated and resolved immediately.

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Independent Auditor’s Report

Members of the Legislative Audit Committee:

Report on the Financial Statements

We have audited the accompanying financial statements of the business-type activities and the discretely presented component units of Colorado State University System (a higher education institution of the State of Colorado) (the System), as of and for the years ended June 30, 2016 and 2015, and the related notes to the financial statements, which collectively comprise the System’s basic financial statements listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audits. We did not audit the financial statements of the Colorado State University Foundation (the CSU Foundation) or the financial statements of the Colorado State University – Pueblo Foundation (CSU-Pueblo Foundation), which are discretely presented component units of the System. Those statements were audited by other auditors whose reports thereon has been furnished to us, and our opinions, insofar as it relates to the amounts included for the CSU Foundation and CSU-Pueblo Foundation, is based solely on the reports of the other auditors. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of the CSU Foundation, the CSU-Pueblo Foundation and the Colorado State University Foundation were not audited in accordance with Government Auditing Standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the System’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the System’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, based on our audits and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the discretely presented component units of the System as of June 30, 2016 and 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 1, the financial statements of the System, an institution of higher education in the State of Colorado, are intended to present the financial position, the changes in financial position and, where applicable, cash flows of the business-type activities and the discretely presented component units of the State of Colorado that are attributable to the transactions of the System. They do not purport to, and do not, present fairly the financial position of the State of Colorado as of June 30, 2016 and 2015, and the changes in its financial position, or where applicable, its cash flows for the years then ended in conformity with the accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, other postemployment benefit information, and pension information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audits of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

18 58

Supplementary Information

Our audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise the System’s basic financial statements. The Other Post Employment Benefit Trust Statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audits of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on the supplementary information.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 9, 2016, on our consideration of the System’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System’s internal control over financial reporting and compliance.

Denver, Colorado December 9, 2016

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20 60 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited)

Management’s Discussion and Analysis

We are pleased to present this financial discussion and analysis of the Colorado State University System (the System). It is intended to make the System’s financial statements easier to understand and communicate our financial situation in an open and accountable manner. This section of the financial report provides an objective discussion and analysis of the financial performance of the System for the fiscal years ended June 30, 2016 and 2015. This discussion provides an analysis of the System’s financial activities based on currently known facts, decisions, or existing conditions. University management is responsible for the completeness and fairness of this discussion and analysis, the financial statements, and related footnote disclosures.

The System includes Colorado State University (CSU), Colorado State University Pueblo (CSU-Pueblo), and Colorado State University Global Campus (CSU-Global). CSU-Global issued separate audited financial statements for the year ended June 30, 2016.

Understanding The Financial Statements

The basic financial statements are designed to provide readers with a broad overview of the System’s finances and are comprised of three basic statements.

Statements of Net Position present information on all of the System’s assets, deferred outflows, liabilities, and deferred inflows; with the difference between assets plus deferred outflows less liabilities and deferred inflows reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the System is improving or deteriorating.

Statements of Revenues, Expenses, and Changes in Net Position present information showing how the System’s net position changed during the two most recent fiscal years. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., the payment for accrued compensated absences, or the receipt of amounts due from students and others for services rendered).

Statements of Cash Flows are reported on the direct method. The direct method of cash flows reporting portrays cash flows from operating, noncapital financing, capital and related financing, and investing activities. Their purpose is to assess the University’s ability to generate net cash flows and meet its obligations as they come due.

Notes to Financial Statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. The notes provide information regarding both the accounting policies and procedures the System has adopted as well as additional detail of certain amounts contained in the financial statements. The notes to financial statements follow the financial statements.

Required Supplementary Information (RSI) presents additional information that differs from the basic financial statements in that the auditor applies certain limited procedures in reviewing the information. In this report, RSI includes schedules of the System’s proportionate share of the Public Employee’s Retirement Association (PERA) net pension liability and contributions to the PERA pension. In addition, the schedules of funding status of the postemployment benefits and employer contributions are provided.

21 61 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited)

Management’s Discussion and Analysis focuses on the primary government, which is the Colorado State University System. The System reports its activity as a business-type activity using the economic resources measurement focus and the accrual basis of accounting.

Financial Highlights

Financial highlights are presented in this discussion and analysis to help with the assessment of the System’s financial activities. This analysis should be read in conjunction with the System’s financial statements and notes thereto, which are also presented in this document.

Selected financial highlights for fiscal year ended June 30, 2016 include:

The Colorado State Legislature established spending authority to the System in its annual Long Appropriations Bill. The Long Bill appropriated funds include an amount from the State of Colorado’s College Opportunity Fund.

For fiscal years ended 2016 and 2015, appropriated expenses in the System were within the authorized spending authority. For fiscal years ended 2016 and 2015, the System had a total appropriation of $134.6 million and $121.9 million, respectively. For fiscal years ended 2016 and 2015, the System’s appropriated funds consisted of $42.9 and $43.0 million, respectively, received from students that qualified for stipends from the College Opportunity Fund and $91.7 million and $78.9 million, respectively, as state fee for service contract revenue. All other revenues and expenses reported by the System represent non-appropriated funds and are excluded from the annual appropriations bill. Non-appropriated funds include tuition and fees, grants and contracts, gifts, indirect cost recoveries, auxiliary revenues and other revenue sources.

The assets and deferred outflows of the System exceeded its liabilities and deferred inflows at June 30, 2016 by $496.0 million (net position). Of this amount, $624.7 million is related to the net investment in capital assets and $135.4 million is restricted for purposes which the donor or grantor or other external party intended. The remaining ($264.1) million is unrestricted. Although unrestricted net position is not externally restricted, it may be internally designated by the System’s administration for various purposes. Unrestricted net position was negatively impacted by the implementation of GASB 68 – Accounting and Financial Reporting for Pensions in fiscal year 2015.

CSU-Global continued to see strong enrollment growth in fiscal year 2016 as newly accredited degree programs and new courses were introduced.

Financial Analysis

The Summary of Net Position presents the assets, deferred outflows, liabilities, deferred inflows, and net position of the Colorado State University System as of the end of the fiscal year. The System’s assets and deferred outflows exceeded liabilities and deferred inflows resulting in a net position at June 30, 2016 and 2015 of $496.0 million, and $445.3 million, respectively. In fiscal years 2016 and 2015, the deferred outflows of resources and deferred inflows of resources include items related to the PERA pension whose liability was recorded due to the implementation of Statement No. 68. The University’s proportionate share of the net pension liability at the years ended 2016 and 2015, was $578.7 million and $524.7 million, respectively. The net investment in capital assets (e.g., land, buildings and equipment) is used to provide services to students, faculty and administration. Consequently, these assets are not available to fund future spending.

22 62 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited)

The implementation of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment to GASB Statement No. 27 (GASB Statement No. 68) in fiscal year 2015 and applied moving forward results in the presentation of 2014 not being comparable to the 2015 and 2016 financial information.

Summary of Net Position (Amounts expressed in thousands) Year Ended June 30 2016 2015 2014 Current assets $ 565,534 455,830 416,447 Noncurrent assets, including net capital assets of $1,531,228, $1,308,364, and $1,233,641, respectively 1,905,177 1,758,815 1,504,261 Deferred outflows 111,971 71,904 43,034 Total assets and deferred outflows 2,582,682 2,286,549 1,963,742 Current liabilities 229,649 193,266 179,069 Noncurrent liabilities 1,842,966 1,645,275 885,062 Deferred inflows 14,091 2,755 - Total liabilities and deferred inflows 2,086,706 1,841,296 1,064,131 Net position: Net investment in capital assets 624,707 638,613 623,886 Restricted 135,434 117,133 105,976 Unrestricted (264,165) (310,493) 169,749 Total net position $ 495,976 445,253899,611

The $256.1 million increase in System assets in 2016 over that of 2015 is related to increases in the current assets and nondepreciable capital asset sections. The $109.7 million increase in current assets was primarily due to: a $101.0 million increase in cash and cash equivalents, a $10.7 million increase in receivables, offset by a $2.0 million decrease in inventories and prepaid expenses. The increase in cash and cash equivalents and receivables is partially related to a 5.7% growth in enrollment as well as increases in cash for capital projects. Noncurrent assets increased primarily due to increases in construction in process, $230.8 million, offset by a $76.0 million decrease in restricted cash and cash equivalents. This increase in construction in process and decrease in restricted cash is due to the progress made on large bonded projects.

The $40.1 million increase in deferred outflows is mainly due to the System’s proportionate share of the earnings on PERA’s pension plan investments and experience.

In fiscal year 2016, total liabilities increased $234.1 million. Current liabilities increased $36.4 million due primarily to a $36.0 million increase in accounts payable. The increase in accounts payable was mainly due to large capital project payables at yearend. Noncurrent liabilities increased $197.7 million. This increase is primarily due to the $146.6 million increase in bonds payable and a $54.1 million increase in the net pension liability. The increase in bonds payable is due to the issuance of Bond Series 2015 E and F.

The $11.3 million increase in deferred inflows was mainly due to the change in the System’s proportionate share of PERA and the change in PERA assumptions.

The statements of revenues, expenses and changes in net position report the results of operating and nonoperating revenues and expenses during the year and the resulting increase or decrease in net position at the

23 63 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited) end of the fiscal year. Operating revenues are received for providing goods and services to the various customers and constituencies of the University. Operating expenses are paid to acquire or produce goods and services provided in return for operating revenues and to carry out the mission of the University. Nonoperating revenues/expenses include items determined to not fall in the operating category.

Summary of Revenues, Expenses and Changes in Net Position (Amounts expressed in thousands) Year Ended June 30 2016 2015 2014 Total operating revenues $ 1,095,275 1,011,314 938,313 Total operating expenses 1,161,648 1,104,674 1,024,914 Operating loss (66,373) (93,360) (86,601) Net nonoperating revenues 79,207 75,594 71,767 Gain (loss) before other revenues (expenses) 12,834 (17,766) (14,834) Total other revenues 37,889 51,182 31,423 Special items: Transfer to OPEB Trust - - (22,185) Increase (decrease) in net position 50,723 33,416 (5,596) Net position, beginning of year 445,253 899,611 905,207 Change in accounting principle - (487,774) - Net position, beginning of year as adjusted 445,253 411,837 905,207 Net position, end of year $ 495,976 445,253 899,611

The System experienced a $66.4 million, $93.4 million, and $86.6 million loss from operations in fiscal years ended 2016, 2015, and 2014, respectively. The operating loss in 2016 was offset by net nonoperating and other revenues of $117.1 million.

24 64 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited)

Operating and Nonoperating Revenues (Excluding Capital) (Amounts expressed in thousands) Year Ended June 30 2016 2015 2014 Operating revenues: Tuition and fees, net $ 500,084 460,304 409,617 State fee for service revenue 91,723 78,931 72,025 Grants and contracts 291,131 274,318 269,965 Sales and services of educational activities 37,876 33,763 34,178 Auxiliary enterprises 163,533 153,865 144,400 Other 10,928 10,133 8,128 Total operating revenues 1,095,275 1,011,314 938,313 Nonoperating revenues: State appropriations 2,144 2,355 2,472 Gifts 48,507 44,405 42,805 Investment income 7,109 3,901 5,272 Federal nonoperating grants and contracts41,176 41,116 40,020 Other nonoperating revenues, net 5,805 10,788 5,246 Net nonoperating revenues 104,741 102,565 95,815 Total noncapital revenue $ 1,200,016 1,113,879 1,034,128

Fiscal year 2016 System operating revenues increased $84.0 million. This is attributable to increases in all operating revenue sources: tuition and fees increased $39.8 million due to increases in both attendance and tuition and fee rates, grants and contracts increased $16.8 million due to increases in federal grants, state fee for service increased $12.8 million as determined by the State of Colorado, auxiliary enterprise revenue increased $9.7 million mainly due to the increase in census, and sales and services of educational activities and other operating revenue increased a combined $4.9 million. In fiscal year 2015 System operating revenues increased $73.0 million. This was primarily attributable to a $50.7 million increase in tuition and fee revenue, a $6.9 million increase in state fee for service, a $9.5 million increase in revenues from auxiliary enterprise activities, a $4.4 million increase in grants and contracts, and a $2.0 million increase in the other operating revenues.

System nonoperating revenues increased $2.2 million and $6.8 million in fiscal years 2016 and 2015 respectively. The fiscal year 2016 increase is mainly related to a $4.1 million increase in gifts, a $3.2 million increase in investment income, offset by a $5.0 million decrease in other nonoperating revenues. Federal nonoperating grants and contracts remained constant. The University received $2.1 million, $2.4 million, and $2.5 million in fiscal years 2016, 2015, and 2014 respectively in State appropriations related to severance tax money received for Healthy Forests & Vibrant Communities and the Forest Restoration Project.

25 65 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited)

In addition to operating and nonoperating revenues, the University had the following capital revenue.

Capital Revenue (Amounts expressed in thousands) Year Ended June 30 2016 2015 2014 State capital contributions 19,831$ 17,153 3,620 Capital grants 8,117 12,591 4,514 Capital gifts 10,451 21,055 21,193 Total capital revenues 38,399$ 50,799 29,327

System other revenues decreased $13.3 million in fiscal year 2016 and increased $19.8 million in fiscal year 2015. The $13.3 million decrease is mainly attributed to a $10.6 million decrease in capital gifts. In fiscal year 2015 the Powerhouse Energy Innovation Center received $5.9 million in gift revenue in support of that capital project and $4.7 million in gift revenue in support of the Avenir Museum Renovation & Expansion project.

Operating Expenses by Functional Category (Amounts expressed in thousands) Year Ended June 30 2016 2015 2014 Instruction $ 307,078 293,171 272,049 Research 195,138 187,160 182,094 Public service 101,731 90,677 83,703 Academic suppport 84,590 79,861 78,804 Student services 58,969 51,875 46,913 Institutional support 66,189 63,831 56,194 Operation and maintenance of plant 74,161 73,590 65,493 Scholarships and fellowships 30,185 30,661 24,557 Auxiliary enterprise 148,649 144,310 137,459 Depreciation 94,958 89,538 77,648 Total operating expenses $ 1,161,648 1,104,674 1,024,914

Fiscal year 2016 System operating expenses increased $57.0 million. This is due to increases in the following areas: $13.9 million in instruction, $8.0 million in research, $11.1 million in public service, $4.7 million in academic support, $7.1 million in student services, $2.4 million in institutional support, $571 thousand in operation and maintenance of plant, $4.3 million in auxiliary enterprise, and $5.4 million in depreciation. These increases are offset by a $476 thousand decrease in scholarships and fellowships. Half of the increase is related to cost of living increases across all functional lines.

Fiscal year 2015 System operating expenses increased $79.8 million. This is due to increases in expenditures in all the functional areas: $21.1 million in instruction, $5.1 million in research, $7.0 million in public service, $1.0 million in academic support, $5.0 million in student services, $7.6 million in institutional support, $8.1 million in operation and maintenance of plant, $6.1 million in scholarships and fellowships, $6.9 million in auxiliary enterprises, and $11.9 million in depreciation.

26 66 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited)

Capital Assets and Debt Administration

At June 30, 2016 the System had approximately $1.5 billion invested in capital assets, net of accumulated depreciation of $951.1 million. At June 30, 2015, the System had approximately $1.3 billion invested in capital assets, net of accumulated depreciation of $865.9 million. At June 30, 2014, the System had approximately $1.2 billion invested in capital assets.

Depreciation charges were $95.0 million, $89.5 million, and $77.6 million for the fiscal years ended June 30, 2016, 2015, and 2014 respectively.

During fiscal year 2016, the System received $19.8 million of state capital contributions for capital construction projects. Of this amount, $16.2 million is related to the CSU campus and $3.6 million is related to the CSU- Pueblo campus. At CSU, $13.2 million is related to the Chemistry building with the remaining $3.0 million related to fire alarm and fire sprinkler projects, natural gas line and water line projects and an elevator upgrade. At CSU-Pueblo, $1.3 million is related to the General Classroom Building, $866 thousand for Security System – Phase II, $696 thousand for a roof replacement with the remaining amount related to smaller campus projects.

A breakdown of assets by category, net of accumulated depreciation is provided below.

Capital Assets, Net of Accumulated Depreciation (Amounts expressed in thousands) June 30 2016 2015 2014 Land 37,492$ 32,144 27,074 Land improvements 35,209 34,359 33,557 Buildings and improvements 1,026,612 1,028,515 888,201 Leasehold improvements 987 2,286 3,735 Equipment 88,163 99,784 104,831 Collections 5,149 3,808 2,878 Library materials 7,697 8,357 9,216 Construction in progress 329,919 99,111 164,149 Total capital assets, net 1,531,228$ 1,308,364 1,233,641

In 2016 capital assets, net increased $222.9 million with the increase attributable to construction in progress. The following are the major construction in progress projects: $91.5 million – Multi-Purpose Stadium, $78.4 million – Aggie Village North Redevelopment, $23.9 million – Biology Building, $22.9 million – CSU Health & Medical Center Building, $15.4 million – South College Parking Garage, $13.2 million – Chemistry Building as well as many other smaller projects.

In 2015 capital assets, net increased $74.7 million. This increase was primarily attributable to a $140.3 million increase in buildings and improvements, offset by the $65.0 million decrease in construction in progress. The increase in buildings and improvements was largely attributed to the capitalization of the following substantially complete buildings: $75.2 million – Student Center project, $49.4 million – Laurel Village project, $12.4 million – Animal Sciences projects, $11.9 million – Eddy Building project, $5.6 million – Avenir Gallery Addition, $3.8 million – Walter and Suzanne Scott, Jr. Bioengineering 2nd Floor Tenant Finish, as well as many other smaller projects. These costs were offset by depreciation. The decrease in construction in progress was mainly due to several large projects being capitalized in fiscal year 2015.

27 67 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited)

In 2014 capital assets, net increased $89.3 million. This increase was primarily attributable to a $76.6 million increase in construction in progress, $14.2 million increase in buildings and improvements, $2.7 million increase in land, and a $2.8 million increase in leasehold improvements. These increases were offset by decreases of $3.7 million in equipment, $1.9 million in land improvements, and $1.5 million in library materials. The increase in construction in progress was largely attributed to: $40.5 million – Student Center project, $31.2 million – Academic Village North project, and $10.2 million – Animal Science Building project offset by projects that were capitalized during the year. The increase in buildings and improvements is mainly due to the completion and capitalization of $16.5 million for the Braiden 4th floor addition, $10.7 million for the Moby Addition & Renovation, $9.0 million for the Behavioral Science Building Addition, $5.0 million for the Lory Student Center Seismic Upgrades, and $3.9 million for the Advanced Beam Lab. These costs are offset by depreciation expense. The increase in land is largely attributed to the acquisitions of three parcels of land in Fort Collins for $2.2 million and Bay Farm for $143 thousand. The increase in leasehold improvements is mainly due to three major projects that were completed, $2.5 million for the EECL, $855 thousand for Online Plus, and $213 thousand for the Northern Hotel.

The System had capital construction commitments of approximately $131.8 million at June 30, 2016 including approximately $37.5 million for the Biology Building, $31.3 million for the CSU Health and Medical Center, $21.0 million for the Multi-Purpose Stadium, $19.2 million for the Chemistry Building, $11.1 million for the Aggie Village North Redevelopment, $2.6 million for the South College Parking Garage, and $2.3 million for the Prospect Road Underpass. The remaining commitments are for other small projects at the University. CSU- Pueblo had capital commitments of $427 thousand which is related to $16 thousand for the General Classroom Building, $400 thousand for the Modular Data Center, and $11 thousand to Extend Bartley Boulevard.

The System had $1.2 billion, $1.1 billion, and $828.2 million of debt outstanding at June 30, 2016, 2015, and 2014 respectively. Summary of Debt (Amounts expressed in thousands) June 30 2016 2015 2014 Debt outstanding: Revenue bonds, certificates of participation $ 1,193,743 1,043,146 818,860 Capital lease obligations 20,228 21,950 9,358 Total Long-term Debt $ 1,213,971 1,065,096 828,218 In fiscal year 2016, the System issued $156.3 million in System Enterprise Revenue Bonds, Series 2015 E and F. The proceeds will be used on the following projects: The Prospect Underpass, Research Dr. Parking Lot, S. College Ave. Garage, PERC, the Biology Building, the CSU Health & Medical Center, and the Stadium Academic Space. Series 2015 E-1 bears a 5% interest rate and matures in March 2047, Series 2015 E-2 bears a 5% interest rate and matures in March 2033, and Series 2015 F bears interest rates from 1.75% - 5%, and matures in 2023.

In fiscal year 2015, the System issued $235.2 million in System Enterprise Revenue Bonds, Series 2015 A, B and C. The proceeds from the sale of the Series 2015 A and B ($167.5 million) was used to construct a 643,000 gross square foot multipurpose stadium to be located between Lake Street and Pitkin Street in Fort Collins, Colorado. Series 2015 C ($67.7 million) will advance refund a portion of the outstanding Series 2007 B bonds, Series 2008 A bonds, and Series 2009 A bonds. The 2015 A, B, and C Bonds bear interest rates from 2.0 to 5.0 percent with final maturity falling in 2055. In addition, the System issued $66.7 million in System Enterprise Revenue Bonds, Series 2015 D. The proceeds from the sale of the Series 2015 D was used to defray a portion

28 68 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited) of the cost of financing certain 2015 improvement projects. The 2015 D Bond has a variable interest with a final maturity falling in 2047.

In fiscal year 2014, the System issued $138.7 million in System Enterprise Revenue Bonds, Series 2013 E. The proceeds from the sale of the Series 2013 E was used at CSU for the Aggie Village North Redevelopment ($112.3 million), for the Animal Sciences Building Renovation ($3.9 million), to add an entrance to the William O. Eddy Hall (Eddy Building) ($4.8 million), the Walter and Suzanne Scott, Jr. Bioengineering Building remodel ($8.5 million), and the Lory Student Center Seismic Upgrades ($5.0 million). The 2013 E Bonds bear interest rates from 3.0 to 5.0 percent with final maturity falling in 2045. In addition, the System issued $26.5 million in System Enterprise Exempt and Taxable Revenue Bonds, Series 2013 C, D. The proceeds from the sale of the Series 2013 C, D was used to construct an addition to and to renovate, improve, and equip the Occhiato University Center on the CSU-Pueblo campus. The 2013 C Bonds bear interest rates from 5.0 to 5.3 percent with final maturity falling in 2044. The 2013 D Bonds bear interest rates from 1.0 to 5.3 percent with final maturity falling in 2028.

Net proceeds of the above mentioned Series 2015 C and previous Series 2013 A, B; and Series 2012 B, C were placed in an escrow account to purchase U.S. Treasury Securities. The principal and interest from the U.S. Treasury Securities is being used to repay the refunded bonds which are considered to be defeased. The Escrow Agent will pay the debt service requirements on each of the remaining refunded bonds. Details of each of the outstanding bonds that were partially or fully refunded by these refunding bonds is listed below.

Outstanding Refunded Bonds by Series (Amounts expressed in thousands)

Refunded Defeased Call Par Call Price Refunding Bond Call Date Bond Obligation Amount (% of Par) Series 2012 B, 2013 A, 2013 B Series 2007 A141,480$ 3/1/2017141,480 $ 100 Series 2015 C Series 2007 B 2,4803/1/2017 2,480 100 Series 2013 B Series 2007 C12,400 N/A N/AN/A Series 2015 C Series 2008 A64,745 3/1/2018 64,745 100 Series 2013 A, 2015 C Series 2009 A53,210 3/1/2019 50,975 100

Economic Outlook/Future of the Colorado State University System

The Colorado State University System is a group of higher education institutions in the State of Colorado run under one common leadership structure as previously identified.

The System receives revenues from numerous sources including students who receive a stipend from the State to cover a portion of their higher education expenses. In many states, this funding is appropriated directly to the institution. In Colorado, it is appropriated for use by the student.

The Colorado State University System is authorized to receive $91.5 million in fee for service contract revenue and $43.0 million in student stipends in fiscal year 2017. The $134.5 million of anticipated fiscal year 2017 state support represents a $110 thousand increase in student stipends, a $252 thousand decrease in fee for service for a net $142 thousand decrease in state support.

The State General Fund revenue is projected on a quarterly basis by the Governor’s Office of State Planning and Budgeting. The most recent projection (September 2016) estimates that the fiscal year 2016-17 State General Fund revenue will be $226.5 million short of the amount needed to fully fund the budget and required reserve. Under this forecast and current law, General Fund appropriations subject to the limit in fiscal year 2017-18 can increase 1.2 percent over the previous fiscal year. The State’s overall budgetary situation remains

29 69 COLORADO STATE UNIVERSITY SYSTEM Management’s Discussion and Analysis Years Ended June 30, 2016 and 2015 (Unaudited) governed by the three constitutional budgetary provisions: The Taxpayer Bill of Rights (TABOR), the Gallagher Amendment on property taxes, and Amendment 23 requiring specified amounts in state support for K-12 Education. The budgetary situation for higher education has changed with the implementation of the College Opportunity Fund in fiscal year 2006. As a result of legislation adopted in the 2004 session (S.B. 04- 189), the State no longer provides direct State General Fund appropriation to the governing boards. Instead, the State provides stipends to qualified, resident undergraduate students, and institutions receive fee for service contracts from the Colorado Commission on Higher Education for the provision of other educational services. Finally, S.B. 04-189 also allows institutions of higher education to become TABOR enterprises through this new funding mechanism. Enterprise status eliminates institutional cash funds, such as tuition, from counting against the state’s TABOR limitation. As a result of S.B. 04-189, the Colorado State University System became a qualified Tabor enterprise.

In fiscal year 2007, the System was designated a Single Enterprise providing it greater flexibility and expanded financial capabilities in a host of areas. This designation allows the System to raise revenues and finance projects outside of the revenue limits set for most governmental entities. With this TABOR status, the cash funds collected by the System's institutions no longer count toward the State's overall revenue limit. In addition, as enterprises, the institutions can consider issuing revenue bonds backed by student fees for academic buildings.

Total enrollment at the System for fiscal year ended 2016 was 52,090. This includes 32,236 at CSU, 4,244 at CSU-Pueblo, and 15,610 enrolled at CSU-Global. Compared to fiscal year ended 2015, CSU saw slight growth in resident instruction and nonresident instruction enrollment of 1.8 percent and .7 percent, respectively. CSU- Pueblo experienced a decrease in resident instruction and nonresident instruction enrollment of 7.0 percent and 3.0 percent, respectively. CSU-Global saw total enrollment grow 18.8 percent from fiscal year ended 2015. Total enrollment at the System is anticipated to increase 6.7 percent in fiscal year 2017. This includes a 3.2 percent increase at CSU, a 4.7 percent decrease at CSU-Pueblo, and a 16.1 percent increase at CSU-Global.

Requests for Information

The financial report is designed to provide a general overview of the Colorado State University System’s finances for all those with an interest in the System’s finances and to demonstrate the System’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the attention of the Chief Financial Officer, Colorado State University System, 410 Seventeenth Street, Suite 1415, Denver, CO 80202.

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COLORADO STATE UNIVERSITY SYSTEM Statements of Net Position June 30, 2016 and 2015 (Amounts expressed in thousands)

2016 2015 Assets and Deferred Outflows of Resources

Current assets: Cash and cash equivalents $ 453,556 352,583 Student accounts receivable, net 32,063 31,165 Grant and other accounts receivable, net 59,718 50,191 Student loans receivable, net 3,191 2,911 Inventories 9,404 11,088 Prepaid expenses 7,602 7,892

Total current assets 565,534 455,830

Noncurrent assets: Restricted cash and cash equivalents 317,394 393,443 Restricted investments 25,248 25,470 Student loans receivable, net 20,286 20,383 Other noncurrent assets 11,021 11,155

Total noncurrent assets 373,949 450,451

Nondepreciable capital assets: Land and land improvements 37,492 32,144 Construction in progress 329,919 99,111 Collections 5,149 3,808

Total nondepreciable capital assets 372,560 135,063

Depreciable capital assets, net: Land improvements 35,209 34,359 Buildings and improvements 1,026,612 1,028,515 Leasehold improvements 987 2,286 Equipment 88,163 99,784 Library materials 7,697 8,357

Total depreciable capital assets (net of accumulated depreciation) 1,158,668 1,173,301

Total noncurrent assets 1,905,177 1,758,815

Deferred outflows of resources: Loss on bond refundings 45,275 47,916 Deferred outflows-pensions 66,696 23,988

Total deferred outflows of resources 111,971 71,904

Total assets and deferred outflows of resources $ 2,582,682 2,286,549

(continued) 32 72

COLORADO STATE UNIVERSITY SYSTEM Statements of Net Position June 30, 2016 and 2015 (Amounts expressed in thousands)

2016 2015 Liabilities and Deferred Inflows of Resources

Current liabilities: Accounts payable $78,470 42,482 Accrued liabilities 76,975 82,445 Unearned revenue 35,009 34,190 Deposits held for others, current 6,712 6,266 Bonds payable and certificates of participation, current 23,249 19,298 Capital leases payable, current 3,884 3,496 Other noncurrent liabilities, current 2,411 2,388 Compensated absences liabilities, current 2,939 2,701

Total current liabilities 229,649 193,266

Noncurrent liabilities: Bonds payable and certificates of participation 1,170,4941,023,848 Capital leases payable 16,344 18,454 Deposits held for others 19,140 23,039 Other noncurrent liabilities 5,774 5,946 Compensated absences liabilities 52,496 49,325 Net pension liability 578,718 524,663

Total noncurrent liabilities 1,842,9661,645,275

Deferred Inflows of resources: Deferred inflows-other 595 309 Deferred inflows-pensions 13,496 2,446

Total deferred inflows of resources 14,091 2,755

Total liabilities and deferred Inflows of resources$2,086,7061,841,296

Net position

Net investment in capital assets $624,707 638,613 Restricted for nonexpendable purposes 25,421 26,151 Restricted for expendable purposes - other 110,013 90,982 Unrestricted (264,165)(310,493)

Total net position $495,976 445,253

See accompanying notes to basic financial statements.

33 73

COLORADO STATE UNIVERSITY SYSTEM Colorado State University Foundation (A Component Unit of the Colorado State University System) Statements of Financial Position-Discretely Presented Component Unit June 30, 2016 and 2015 (Amounts expressed in thousands)

Temporarily Permanently Total Temporarily Permanently Total Assets Unrestricted Restricted Restricted 2016 Unrestricted Restricted Restricted 2015 Cash and cash equivalents $ 260 668 95 1,023 471 555 21 1,047 Investments 21,351 217,777 186,035 425,163 33,164 188,951 176,612 398,727 Pledges receivable, net - 38,611 6,015 44,626 - 23,179 1,065 24,244 Property and equipment, net of accumulated depreciation 21 - - 21 14 - - 14 Cash surrender value of life insurance policies - 16 629 645 - 3 601 604 Prepaids and other assets 223 113 29 365 185 29 32 246 Total assets 21,855 257,185 192,803 471,843 33,834 212,717 178,331 424,882 Liabilities and Net Assets Liabilities Accounts payable (primarily to CSU) 247 1,013 - 1,260 218 690 - 908 Other accrued liabilities 176 - - 176 159 - - 159 Life income agreements 430 111 266 807 450 116 231 797 Deposit held in custody for CSU - 1,667 11,342 13,009 - 1,904 12,337 14,241 Total liabilities 853 2,791 11,608 15,252 827 2,710 12,568 16,105 Net assets Unrestricted Undesignated 5,454 - - 5,454 6,439 - - 6,439 Board-designated 21,354 - - 21,354 27,871 - - 27,871 Endowment investment losses in excess of gift value (5,806) - - (5,806) (1,303) - - (1,303) Total unrestricted net assets 21,002 - - 21,002 33,007 - - 33,007 Temporarily restricted - 254,394 - 254,394 - 210,007 - 210,007 Permanently restricted - - 181,195 181,195 - - 165,763 165,763 Total net assets 21,002 254,394 181,195 456,591 33,007 210,007 165,763 408,777 Total liabilities and net assets 21,855$ 257,185 192,803 471,843 33,834 212,717 178,331 424,882

See accompanying notes to basic financial statements.

34 74

COLORADO STATE UNIVERSITY SYSTEM Colorado State University - Pueblo Foundation (A Component Unit of the Colorado State University System) Statements of Financial Position-Discretely Presented Component Unit June 30, 2016 and 2015 (Amounts expressed in thousands)

Total Total Assets 2016 2015 Cash and cash equivalents 1,174$ 3,528 Accounts receivable 30 33 Prepaid income taxes - 3 Unconditional promises to give, net 243 1,049 Marketable securities 32,988 30,435 Miscellaneous assets 1 1 Beneficial interest in remainder trusts 232 1,622 Investment in real estate 205 165 Investment in limited partnership 297 297 Leasehold improvements and office equipment 102 106 Less accumulated depreciation (76) (72) Total assets 35,196$ 37,167 Liabilities and net assets Liabilities Accounts payable $ 512 2,165 Other liabilities 38 26 Total liabilities 550 2,191 Net assets Unrestricted 1,604 4,650 Temporarily restricted 15,412 14,523 Permanently restricted 17,630 15,803 Total net assets 34,646 34,976 Total liabilities and net assets 35,196$ 37,167

See accompanying notes to basic financial statements.

35 75

COLORADO STATE UNIVERSITY SYSTEM Colorado State University System Foundation (A Component Unit of the Colorado State University System) Statements of Financial Position-Discretely Presented Component Unit June 30, 2016 (Amounts expressed in thousands)

Assets 2016 Cash and cash equivalents $ 392 Accounts receivable, net 69 Prepaid expenses 12 Prepaid income taxes 16 Property and equipment, net of accumulated depreciation 53 Deposits 6 Total assets 548 Liabilities and Net Assets Liabilities Accounts payable 3 Accrued and other expenses 3 Deferred revenue 7 Deferred rent 14 Deferred tax liability 18 Total liabilities 45 Net assets Total net assets, unrestricted 503 Total liabilities and net assets $ 548

See accompanying notes to basic financial statements.

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37 77

COLORADO STATE UNIVERSITY SYSTEM Statements of Revenues, Expenses, and Changes in Net Position Years ended June 30, 2016 and 2015 (Amounts expressed in thousands)

2016 2015

Operating revenues: Student tuition and fees (including $85,117,and $77,153 of revenues pledged for bonds in 2016 and 2015, respectively, and net of scholarship allowances of $124,141 and $114,432 for 2016 and 2015, respectively) $ 500,084 460,304 State fee for service revenue 91,723 78,931 Grants and contracts (including $47,618 and $45,586 of revenues pledged for bonds in 2016 and 2015, respectively) 291,131 274,318 Sales and services of educational activities 37,876 33,763 Auxiliary enterprises (including $125,070 and $117,629 of revenues pledged for bonds in 2016 and 2015, respectively, and net of scholarship allowances of $4,341 and $4,714 for 2016 and 2015, respectively) 163,533 153,865 Other operating revenue 10,928 10,133 Total operating revenues 1,095,275 1,011,314

Operating expenses: Instruction 307,078 293,171 Research 195,138 187,160 Public service 101,731 90,677 Academic support 84,590 79,861 Student services 58,969 51,875 Institutional support 66,189 63,831 Operation and maintenance of plant 74,161 73,590 Scholarships and fellowships 30,185 30,661 Auxiliary enterprises 148,649 144,310 Depreciation 94,958 89,538 Total operating expenses 1,161,648 1,104,674 Operating loss $ (66,373) (93,360)

38 78

COLORADO STATE UNIVERSITY SYSTEM Statements of Revenues, Expenses, and Changes in Net Position Years ended June 30, 2016 and 2015 (Amounts expressed in thousands)

2016 2015 Nonoperating revenues (expenses): State appropriations $ 2,144 2,355 Gifts 48,507 44,405 Investment income (including $1,100 and $728 of revenues pledged for bonds in 2016 and 2015, respectively) 7,109 3,901 Interest expense on capital debt (25,534) (26,971) Federal nonoperating grants and contracts 41,176 41,116 Other nonoperating revenues 5,805 10,788 Net nonoperating revenues 79,207 75,594 Gain (loss) before other revenues 12,834 (17,766) Other revenues: State capital contributions 19,831 17,153 Capital grants 8,117 12,591 Capital gifts 10,451 21,055 Payments from governing boards or other institutions 220 629 Reductions to permanent endowments (730) (246) Total other revenues 37,889 51,182

Increase in net position 50,723 33,416

Net position, beginning of year 445,253 411,837 Net position, end of year $495,976 445,253

See accompanying notes to basic financial statements.

39 79

COLORADO STATE UNIVERSITY SYSTEM Colorado State University Foundation (A Component Unit of the Colorado State University System) Statements of Activities -Discretely Presented Component Unit Years ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Temporarily Permanently Total Temporarily Permanently Total Unrestricted Restricted Restricted 2016 Unrestricted Restricted Restricted 2015 Support and revenue Contributions $ 274 81,300 15,906 97,480 797 61,999 8,009 70,805 Net investment income (loss) (1,121) (8,374) 86 (9,409) 6,620 392 71 7,083 Actuarial change in value of life income agreements (21) (19) (44) (84) (29) (18) (41) (88) Other revenue - 12,501 20 12,521 - 257 36 293 Net assets released from restrictions Satisfaction of program restrictions 40,473 (40,473) - - 44,910 (44,908) (2) - Total support and revenue 39,605 44,935 15,968 100,508 52,298 17,722 8,073 78,093 Expenses Program services CSU College of Agricultural Sciences 3,981 - - 3,981 6,147 - - 6,147 Health & Human Sciences 3,717 - - 3,717 7,118 - - 7,118 Business 1,622 - - 1,622 2,304 - - 2,304 Engineering 3,838 - - 3,838 5,706 - - 5,706 Liberal Arts 1,937 - - 1,937 1,272 - - 1,272 Natural Resources - Warner 2,514 - - 2,514 2,326 - - 2,326 Natural Sciences 2,069 - - 2,069 1,441 - - 1,441 Veterinary Medicine and Biomedical Sciences 10,009 - - 10,009 8,015 - - 8,015 Athletics 2,940 - - 2,940 3,183 - - 3,183 Central Development 7,480 - - 7,480 7,270 - - 7,270 Other CSU programs 7,488 - - 7,488 7,033 - - 7,033 Total program services 47,595 - - 47,595 51,815 - - 51,815 Support services Management and general 3,172 - - 3,172 2,797 - - 2,797 Total expenses 50,767 - - 50,767 54,612 - - 54,612 Change in allowance for uncollectible pledges - 1,398 529 1,927 - 393 (8) 385 Change in net assets (11,162) 43,537 15,439 47,814 (2,314) 17,329 8,081 23,096 Interfund transfers (843) 850 (7) - (1,196) 1,337 (141) - Net assets, beginning of year 33,007 210,007 165,763 408,777 36,517 191,341 157,823 385,681 Net assets, end of year $ 21,002 254,394 181,195 456,591 33,007 210,007 165,763 408,777

See accompanying notes to basic financial statements

40 80

COLORADO STATE UNIVERSITY SYSTEM Colorado State University - Pueblo Foundation (A Component Unit of the Colorado State University System) Statements of Activities -Discretely Presented Component Unit Years ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Temporarily Permanently Total Temporarily Permanently Total Unrestricted Restricted Restricted 2016 Unrestricted Restricted Restricted 2015 Support and revenue Contributions $ 54 3,516 2,535 6,105 63 1,912 3,026 5,001 In-kind contributions 26 361 - 387 19 67 - 86 Fundraising revenue 10 261 - 271 6 223 - 229 Dividends 375 1,276 - 1,651 330 1,789 - 2,119 Interest - 2 - 2 - 3 - 3 Realized loss on sale of marketable securities (11) (38) - (49) (44) (239) - (283) Unrealized loss on marketable securities (331) (1,125) - (1,456) (109) (592) - (701) Net rental income 33 - - 33 - - - - Miscellaneous revenue (1) 38 - 37 (2) 13 - 11 Changes in the value of split-interest agreements - (13) - (13) - (9) (18) (27) Reclassification of net assets (3,164) 3,872 (708) - (82) 87 (5) - Net assets released from restrictions 7,261 (7,261) - - 3,854 (3,854) - - Total support and revenue 4,252 889 1,827 6,968 4,035 (600) 3,003 6,438 Expenses Program expenses 6,341 - - 6,341 3,319 - - 3,319 Management and general 463 - - 463 422 - - 422 Fundraising 494 - - 494 439 - - 439 Total expenses 7,298 - - 7,298 4,180 - - 4,180

Change in net assets (3,046) 889 1,827 (330) (145) (600) 3,003 2,258 Net assets, beginning of year 4,650 14,523 15,803 34,976 4,795 15,123 12,800 32,718 Net assets, end of year $ 1,604 15,412 17,630 34,646 4,650 14,523 15,803 34,976

See accompanying notes to basic financial statements

41 81

COLORADO STATE UNIVERSITY SYSTEM Colorado State University System Foundation (A Component Unit of the Colorado State University System) Statements of Activities -Discretely Presented Component Unit Year ended June 30, 2016 (Amounts expressed in thousands)

2016 Revenues $ 1,826 Operating expenses Advertising and promotion 2 Contract labor 473 Depreciation 5 Employee benefits 3 Insurance 10 Office expenses 13 Payroll 366 Payroll taxes 33 Professional fees 52 Rent 56 Telephone and internet services 14 Use tax 1 Utilities 1 Total operating expenses 1,029 Income taxes Federal 243 State 33 Deferred 18 Total income taxes 294 Total expenses 1,323 Change in net assets 503 Net assets, unrestricted, beginning of year - Net assets, unrestricted, end of year $ 503

See accompanying notes to basic financial statements

42 82

COLORADO STATE UNIVERSITY SYSTEM Statements of Cash Flows Years ended June 30, 2016 and 2015 (Amounts expressed in thousands)

2016 2015 Cash flows from operating activities: Cash received: Tuition and fees $ 496,120 457,631 Student loans collected 5,162 5,208 Sales of products 24,229 24,886 Sales of services 170,646 160,878 State fee for service revenue 91,723 78,931 Grants and contracts 292,435 275,583 Other operating receipts 10,986 10,910 Cash payments: Scholarships disbursed (22,648) (21,951) Student loans disbursed (4,522) (4,179) Payments to employees (766,145) (717,617) Payments to suppliers (253,416) (249,260)

Net cash provided by operating activities 44,570 21,020

Cash flows from noncapital financing activities: State appropriations - noncapital 2,144 2,355 Gifts and grants for other than capital purposes 47,043 41,486 Agency (direct lending inflows) 260,039 239,260 Agency (direct lending outflows) (259,896) (239,399) Other agency inflows 64,931 61,608 Other agency (outflows) (68,553) (65,371) Payments (to) from governing boards or other institutions (550) 603 Other nonoperating revenues 47,960 53,459

Net cash provided by noncapital financing activities 93,118 94,001

Cash flows from capital and related financing activities: Proceeds from capital debt 174,824 238,409 State appropriations - capital 19,831 17,424 Capital grants, contracts, and gifts 14,464 24,249 Acquisition and construction of capital assets (256,855) (133,657) Principal paid on capital debt (24,517) (21,020) Interest on capital debt (45,241) (36,738)

Net cash provided by (used in) capital and related financing activities (117,494) 88,667

43 83

COLORADO STATE UNIVERSITY SYSTEM Statements of Cash Flows Years ended June 30, 2016 and 2015 (Amounts expressed in thousands)

2016 2015 Cash flows from investing activities: Proceeds from sale and maturities of investments $ 11,256 10,701 Purchase of investments (12,192) (11,229) Investment earnings 5,666 3,735

Net cash provided by investing activities 4,730 3,207

Net increase in cash and cash equivalents 24,924 206,895

Cash and cash equivalents 352,583 320,677 Restricted cash and cash equivalents 393,443 218,454

Cash and cash equivalents, beginning of the year 746,026 539,131

Cash and cash equivalents 453,556 352,583 Restricted cash and cash equivalents 317,394 393,443

Cash and cash equivalents, end of the year $770,950 746,026

Reconciliation of operating loss to net cash provided by (used in) operating activities: Operating loss $(66,373)(93,360) Adjustments: Depreciation expense 94,958 89,538 Noncash operating transactions 5,678 4,918 Decrease (increase) in assets: Receivables, net (15,160) (4,336) Inventories and prepaids 2,105(10,420) Increase (decrease) in liabilities: Accounts payable 5,263 7,779 Accrued liabilities (9,443) 7,948 Unearned revenue 835 (660) Deposits held for others 775 36 Compensated absences liabilities 3,409 3,103 Other liabilities 22,523 16,474

Net cash provided by (used in) operating activities $44,570 21,020

44 84

COLORADO STATE UNIVERSITY SYSTEM Statements of Cash Flows Years ended June 30, 2016 and 2015 (Amounts expressed in thousands)

2016 2015 Noncash activities: Noncash gifts $ 7,008 11,600 Noncash capital leases 2,802 15,529 Noncash additions to investments held by Foundation (1,232) (735) Unrealized gains on investments 2,540 56 Capitalized interest 18,512 7,540 Capital debt refinanced, gain/loss - 7,488 Noncash bond issuance costs 428 929 Amortization of bond premium 4,661 3,774 Amortization of bond issuance costs 10 35 Retainage payable 7,321 738 Amortization of bond refunding (2,641) (2,606)

See accompanying notes to basic financial statements.

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46 86 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(1) Governance and Reporting Entity (a) Governance The Colorado State University System (the System) is an institution of higher education of the State of Colorado. For financial reporting purposes, the System is included as part of the State of Colorado’s primary government. The Board of Governors (the Board) is the governing board of the System. The Board consists of nine members appointed by the Governor of the State of Colorado and six nonvoting representatives from the institutions. In addition to these financial statements, the System’s financial activity is also included in the basic financial statements of the State of Colorado.

(b) Reporting Entity The accompanying financial statements present the operations of the System. The System conducts its operations through the following three institutions:

Colorado State University – (CSU) Colorado State University – Pueblo (CSU-Pueblo) Colorado State University – Global Campus (CSU-Global)

As the State’s land grant institution, CSU includes the Agriculture Experiment Station, CSU Extension, and the Colorado State Forest Service. In addition, the accompanying financial statements contain the financial activity of the System offices.

As a higher education institution of the State of Colorado, the income of the System is generally exempt from income taxes under Section 115 of the Internal Revenue Code (IRC). However, income unrelated to the exempt purpose of the System would be subject to tax under IRC Section 511(a)(2)(B). The System had no material unrelated business income for the fiscal years ended June 30, 2016 and 2015.

The System follows Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus. This statement provides guidance to determine whether certain organizations for which the System is not financially accountable should be reported as component units based on the nature and significance of their relationship with the System. The Colorado State University System Foundation (the CSUS Foundation), the Colorado State University Foundation (the CSU Foundation), and the Colorado State University – Pueblo Foundation (the CSU-Pueblo Foundation) have been determined to be component units of the System and have therefore been included as discretely presented component units in the System financial reporting entity. The Colorado State University Research Foundation does not meet the criteria to be reported as a component unit.

The CSUS Foundation The CSUS Foundation, established in 2015, began operations in fiscal year 2016 as a Colorado not for profit entity to support the System in accordance with Colorado law as authorized by the Board. The CSUS Foundation was created to accept transfers of intellectual property of the System, which in turn is then licensed to a wholly owned private corporate subsidiary, Beyond Campus Innovations (the Corporation), of the CSUS Foundation in exchange for ownership of the Corporation and a share of the revenues of the Corporation. The CSUS Foundation will distribute monies or make grants to the System in accordance with the rules and regulations of the internal revenue code. Uses of these distributions include funding innovation and System initiatives, investment in new technology for the

47 87 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands) benefit of the System, improvement of access and affordability for students of the System, and other purposes as determined by the Board.

The officers of the CSUS Foundation are appointed by the Board of Directors. The Board of Directors initially consists of seven Directors. Three members are designated as CSU Directors and four members are designated as Independent Directors. The Board shall elect the CSU Directors and the reigning Independent Directors shall elect future Independent Directors. The number of Directors is subject to change as determined by the Board of Directors.

The source of the CSUS Foundation’s revenue is distributions from the Corporation. The major source for the Corporation’s revenue is management fees for SEU and applicant advising. For the fiscal year ended June 30, 2016, fees were $1.8 million. The total revenue at June 30, 2016 was $1.8 million.

The CSU Foundation The CSU Foundation is a legally separate, tax-exempt entity that was established to receive, manage and invest philanthropic gifts on behalf of CSU. The majority of resources or income thereon that the CSU Foundation holds and invests is restricted for use by, or for the benefit of CSU by the donors. The CSU Foundation is a nonprofit organization that reports under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), including FASB ASC 958-205, Presentation of Financial Statements. As such, certain revenue recognition criteria and presentation requirements are different from GASB revenue recognition criteria and presentation requirements. No modifications have been made to the CSU Foundation’s financial information in the System’s financial reporting entity for these differences, as permitted by GASB Statement No. 39. The CSU Foundation fully discloses the nature of its endowment funds, both donor restricted endowment funds and board- designated endowment funds, and are classified and reported based on the existence or absence of donor-imposed restrictions.

The CSU Foundation was established in 1970 as an independent 501(c)(3) organization. The officers of the CSU Foundation are appointed by the Board of Directors. The Board of Directors consists of five voting members. Four voting members are community members elected by the Board of Directors and the fifth voting member is the President of the Foundation. The three ex-officio, nonvoting members of the Board of Directors serve by virtue of title: President of Colorado State University, the CSU Vice President for University Advancement, and the CSU Vice President for University Operations. No person who is an employee of CSU is eligible to serve as an officer of the CSU Foundation or as a voting Board Member.

The major source for the CSU Foundation’s revenue is contributions. For the fiscal years ended June 30, 2016 and 2015, respectively, gifts were $97.5 million and $70.8 million. Included in Total Support and Revenue is net investment income. The CSU Foundation had net investment loss and net investment income for the fiscal years ended June 30, 2016 and 2015 of $9.4 million and $7.1 million, respectively. The Total Support and Revenue at June 30, 2016 and 2015 was $100.5 million and $78.1 million, respectively.

The support provided by the CSU Foundation to CSU is intended to assist in the promotion, development, and enhancement of the facilities, and educational programs and opportunities of the faculty, students, and alumni of CSU. Additionally, the Foundation provides receipts to contributors and invests philanthropic gifts. Approximately $47.6 million and $51.8 million was transferred to CSU for the fiscal years ended June 30, 2016 and 2015, respectively, in pursuit of the above stated objectives.

48 88 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Endowments and the related expendable accounts of CSU are held by the CSU Foundation for investment safekeeping. These funds amounted to $13.0 million and $14.2 million as of June 30, 2016 and 2015, respectively, and are reported as deposits held in custody for CSU in the financial statements of the CSU Foundation.

Separately issued financial statements for the CSU Foundation are available at 410 University Services Center, Fort Collins, CO 80523.

The CSU-Pueblo Foundation The CSU-Pueblo Foundation was established in 1954 as an independent 501(c)(3) nonprofit corporation. The affairs of the CSU-Pueblo Foundation are conducted by twenty-five voting, elected Director-Trustees. In addition, the President of CSU-Pueblo, one member of the Board of Governors, and the President/CEO of the CSU-Pueblo Foundation serve as nonvoting, ex-officio members. The CSU-Pueblo Foundation is a nonprofit organization that reports under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), including FASB ASC 958-205, Presentation of Financial Statements. As such, certain revenue recognition criteria and presentation requirements are different from GASB revenue recognition criteria and presentation requirements. No modifications have been made to the CSU-Pueblo Foundation’s financial information in the System’s financial reporting entity for these differences, as permitted by GASB Statement No. 39.

The CSU-Pueblo Foundation’s major sources of revenue are contributions and fundraising revenues, dividends and interest, and gains/losses on marketable securities for the fiscal year ending June 30, 2016. The CSU-Pueblo Foundation had $6.9 million in related revenue as of June 30, 2016. The CSU- Pueblo Foundation’s major sources of revenue are contributions and fundraising revenues, dividends and interest, and gains/losses on marketable securities for the fiscal year ending June 30, 2015. The CSU-Pueblo Foundation had $6.4 million in related revenue as of June 30, 2015. The Total Revenue and Support at June 30, 2016 and 2015 was $7.0 million and $6.4 million, respectively.

The CSU-Pueblo Foundation was formed to advance and assist in the development, growth, and operation of CSU-Pueblo. The CSU-Pueblo Foundation recorded $6.3 million and $3.3 million in transfers of gifts and other assets to CSU-Pueblo during fiscal years ended June 30, 2016 and 2015, respectively, in pursuit of the above stated objectives.

Separately issued financial statements may be obtained from the CSU-Pueblo Foundation office at 2200 Bonforte Boulevard, Pueblo, CO 81001-4901.

(2) Basis of Presentation For financial reporting purposes, the System is considered a special-purpose government engaged only in business-type activities. The System applies all applicable Governmental Accounting Standards Board (GASB) pronouncements.

Any effort to reconcile this report with presentations made for other purposes, such as data submitted with the legislative budget request of the System, must take into consideration the differences in the basis of accounting and other requirements for the presentation of such information.

(3) Measurement Focus, Basis of Accounting, and Summary of Significant Accounting Policies As a special-purpose government engaged only in business-type activities, the basic financial statements of the System have been presented using the economic resources measurement focus and the accrual basis of accounting. Presentation is also in accordance with the State of Colorado Higher Education Accounting 49 89 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Standard No. 17. Under the accrual basis of accounting, revenues are recognized when earned, and expenses are recorded when incurred. All significant intra-agency transactions have been eliminated.

(a) Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents are defined as cash-on-hand, demand deposits, certificates of deposit with financial institutions, pooled cash with the State Treasurer, and all highly liquid investments with an original maturity when purchased of three months or less.

(b) Investments With the implementation of GASB Statement No. 72, Fair Value Measurement and Application, the System now provides additional fair value measurements. CSU treasury bill investments are accounted for at fair value, which is determined by quoted prices in active markets for identical assets (level 1). Changes in unrealized gain (loss) on the carrying value of investments are reported as a gain (loss) on investment as well as an unrealized gain (loss) income source in the statements of revenues, expenses, and changes in net position.

Discretely presented component units – CSU Foundation and CSU-Pueblo Foundation investments are accounted for at fair value, which is determined by one of the following: quoted prices in active markets for identical assets (level 1), inputs other than quoted prices that are observable directly or indirectly (level 2), or significant unobservable inputs where level 1 and 2 inputs are unavailable (level 3).

(c) Inventories Inventories, consisting of livestock; facilities and housing maintenance supplies; medical, pharmaceutical, and laboratory supplies; food supplies; books; and soft-goods are stated at the lower of cost or market. Cost is determined either on the first-in/first-out, average-cost, specific-identification, or on the retail method. Livestock inventories have been recorded at the lower of cost or market using unit livestock costing methods and estimated animal weights.

(d) Restricted Cash and Cash Equivalents and Restricted Investments Assets are reported as restricted when restrictions on asset use change the nature or normal understanding of the availability of the assets. For the System, examples of restricted cash and cash equivalents and restricted investments include cash and cash equivalents required as bond reserves, unexpended bond proceeds, and investments held by endowment funds.

(e) Capital Assets Land, land improvements, buildings and improvements, leasehold improvements, library materials, collections, and equipment are recorded at cost at the date of acquisition or fair market value at the date of donation in the case of gifts. Capitalization limits vary at the three institutions ranging from $5 thousand to $50 thousand. At CSU, library materials are valued at average acquisition cost. At CSU- Pueblo, library materials are valued at actual cost.

Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or intangible assets, generally 10 to 70 years for buildings, 6 to 21 years for land improvements, 10 to 15 years for library books, 2 to 12 years for equipment and software, and 3 to 25 years for leasehold improvements. Depreciation expense was not allocated among functional categories.

50 90 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Renovations to buildings and other improvements that significantly increase the value and extend the useful life of the structure or includes a conversion of the use of the space, are capitalized. Routine repairs and maintenance are charged to expense. Major outlays for capital assets and improvements are capitalized as construction in progress throughout the building project.

During capital construction, interest cost is capitalized from the date of the tax-exempt borrowing to the date the qualifying asset is ready for use. Once the capital asset is ready for use, the net cost of interest on the borrowing is capitalized and added to the acquisition cost of the asset.

The System has capitalized collections such as works of art and historical artifacts. The nature of certain collections is such that the value and usefulness of the collection does not change over time. These collections have not been depreciated in the System’s financial statements.

Assets under capital leases are recorded at the present value of the future minimum lease payments and are amortized using the straight-line method over the estimated useful life of the asset being leased.

The System evaluates prominent events or changes in circumstances affecting capital assets to determine whether impairment of a capital asset has occurred. Capital assets are generally considered impaired if a decline in service utility occurs, the impairment is material, and the event or change in circumstance is outside the normal life cycle of the capital asset. Impaired capital assets that will no longer be used by the System are reported at the lower of carrying value or fair value. Impairment losses on capital assets that will continue to be used by the System are measured using the method that best reflects the diminished service utility of the capital asset. If evidence is available to demonstrate that impairment will be temporary, the capital asset is not written down. There were no material impairments of capital assets for fiscal years ended June 30, 2016 and 2015.

(f) Deferred Outflows of Resources With the implementation of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the System now carries a deferred outflow of resources related to the loss on bond refundings previously reported as a liability. Additionally, with the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment to GASB Statement No. 27, the System now carries a deferred outflow of resources related to pensions.

(g) Compensated Absences Liabilities The amount of compensated absence liabilities that are recorded as a current liability on the Statements of Net Position are a three or five year rolling average of actual payouts. The remaining balance of the compensated absence liabilities is recorded as a noncurrent liability on the Statements of Net Position.

51 91 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(h) Deferred Inflows of Resources With the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment to GASB Statement No. 27, the System now carries a deferred inflow of resources related to pensions. In addition, with the implementation of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the System now carries a deferred inflow of resources related to sponsored program nonexchange transactions. (i) Net Position Net position of the System is classified as follows:

Net investment in capital assets – This represents the total investment in capital assets, net of accumulated depreciation and outstanding debt obligations related to those capital assets.

Restricted net position – nonexpendable – Nonexpendable restricted net position consists of endowment and similar type funds in which donors or other outside sources have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing future income, which may either be expended or added to principal.

Restricted net position – expendable – Restricted expendable net position includes resources in which the System is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties or debt agreements.

Unrestricted net position – Unrestricted net position represents resources derived from student tuition and fees, state fee for service reserves, and sales and services of educational activities. These resources are used for transactions relating to the educational and general operations of the System and may be used to meet current expenses for any purpose. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty, and staff. Unrestricted net position may be designated by actions of the Board.

Discretely presented component units – Net assets of the CSUS Foundation, the CSU Foundation, and the CSU-Pueblo Foundation and the changes therein is classified and reported as follows:

Unrestricted net assets – Net assets that are not subject to third party or donor-imposed restrictions.

Temporarily restricted net assets – Net assets are subject to third party or donor-imposed stipulations that will be met either by actions of the CSUS Foundation, the CSU Foundation, the CSU-Pueblo Foundation and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Permanently restricted net assets – Net assets are subject to donor-imposed restrictions that are maintained permanently by the CSUS Foundation, the CSU Foundation, and the CSU-Pueblo Foundation.

52 92 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(j) Classification of Revenues The System has classified revenues as either operating or nonoperating according to the following criteria:

Operating revenues consist of services and sales related to teaching, research, and public service, along with auxiliary activities of student, faculty, and staff support. These revenues include: 1) tuition and fees from students (after reduction for scholarship allowances provided with institutional funds); 2) grants and contracts from federal, state, and local governments, and private sources including businesses, individuals, and foundations; 3) state fee for service revenues; 4) sales and services of the Veterinary Teaching Hospital and Diagnostic Laboratory; and 5) fees for goods and services of auxiliary operations such as student housing and dining, student center retail stores, health services, and athletics. Revenues from exchange transactions are recognized when they are earned and measurable.

Operating expenses represent the full cost of providing the services and goods associated with operating revenues. These expenses are accrued when incurred and measurable and reported using functional classifications.

Nonoperating revenues consist primarily of gifts from grantors and donors, and investment income that are relied upon and budgeted for support of operating expenses. Also included in nonoperating revenues are Federal Pell Grants. Nonoperating expenses include interest expense on capital debt.

Other revenues include revenues from state capital construction and controlled maintenance appropriations, capital gifts, and grants primarily designated for capital purposes. Other expenses include payments to other governing boards or other institutions.

(k) Summer Session Revenue and Related Expenses The System prorates the summer session revenues and expenses based on the number of days between the first day of the summer session and the last day of the summer session which falls before or after June 30.

(l) Application of Restricted and Unrestricted Resources This application is made on a case-by-case basis by management depending on overall program requirements and resources. Generally, management applies restricted resources then unrestricted resources when both restricted and unrestricted resources are available to pay an expense.

(m) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(4) Cash and Cash Equivalents The System deposits its cash and cash equivalents with the Colorado State Treasurer as required by Colorado Revised Statutes (CRS). The State Treasurer pools these deposits and invests them in securities authorized by CRS 24-75-601.1. The State Treasury acts as a bank for all state agencies and institutions of higher education, with the exception of the University of Colorado. Monies deposited in the Treasury are invested until the cash is needed. As of June 30, 2016, the System had cash on deposit with the State 53 93 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Treasurer of $745.4 million which represented approximately 10.1 percent of the total $7.4 billion fair value of deposits in the State Treasurer’s Pool (Pool). As of June 30, 2015, the System had cash on deposit with the State Treasurer of $717.8 million which represented approximately 9.4 percent of the total $7.7 billion fair value of deposits in the Pool.

For financial reporting purposes all of the Treasurer’s investments are reported at fair value, which is determined based on quoted prices in active markets for identical assets ($230.0 million) and significant other observable inputs ($7.2 billion) at the fiscal year ended June 30, 2016. On the basis of the System’s participation in the Pool, the System reports as an increase or decrease in cash and cash equivalents its share of the Treasurer’s unrealized gains and losses on the Pool’s underlying investments. The State Treasurer does not invest any of the Pool’s resources in any external investment pool, and there is no assignment of income related to participation in the Pool. The unrealized gains or losses included in income reflect only the change in fair value for the fiscal year.

The difference between the System’s cash carrying value, deposits with the State Treasurer and balances at other banks is due to outstanding checks and deposits in transit. Interest earned on deposits with the State for the fiscal years ended June 30, 2016 and 2015 was approximately $7.5 million and $5.2 million, respectively. These amounts reflect increases in cash and cash equivalents and increases or decreases in investment income as a result of recording unrealized gains or losses on deposits with the State Treasurer. The System reflected an unrealized gain on cash and cash equivalents on deposit with the State Treasurer for the fiscal years ended June 30, 2016 and 2015 of $4.9 million and $2.3 million, respectively. The unrealized gain on investment income for the fiscal year ended June 30, 2016 was $2.5 million and the unrealized gain on investment income for the fiscal year ended June 30, 2015 was $56 thousand.

Investments in the Treasurer’s Pool are exposed to custodial credit risk if the securities are uninsured, are not registered in the state’s name, and are held by either the counterparty to the investment purchase or the counterparty’s trust department or agent but not in the state’s name. As of June 30, 2016, none of the investments in the State Treasurer’s Pool are subject to custodial credit risk.

Custodial credit risk for deposits is the risk that in the event of a bank failure, the System’s deposits may not be returned to it. To manage custodial risk, deposits with financial institutions are made in accordance with the Colorado Public Deposit Protection Act (PDPA) of 1975. PDPA requires all eligible depositories holding public deposits to pledge designated eligible collateral having a market value equal to at least 102 percent of the deposits exceeding those amounts insured by federal depository insurance. Deposits collateralized under PDPA are considered to be collateralized with securities held by the pledging institutions in the System’s name. Deposits held in money market funds are not PDPA eligible deposits.

At June 30, 2016 and 2015, the System’s book value of cash not on deposit with the State Treasurer was $25.5 million and $28.2 million, respectively. Cash included petty cash/change funds and bank account balances of $124 thousand and $25.4 million as of June 30, 2016 and $122 thousand and $28.1 million as of June 30, 2015, respectively. Bank account balances per the bank at June 30, 2016 and 2015 were $32.7 million and $30.2 million, respectively. Of the June 30, 2016 deposits, $770 thousand were covered by depository insurance and were not exposed to custodial credit risk, and the remaining $31.9 million were collateralized with securities held by the pledging institution’s trust department or agent in the System’s name. Of the June 30, 2015 deposits, $765 thousand were covered by depository insurance and were not exposed to custodial credit risk, and the remaining $29.4 million were collateralized with securities held by the pledging institution’s trust department or agent in the System’s name.

Credit quality risk is the risk that the issuer or other counterparty to a debt security will not fulfill its obligations. This risk is assessed by national rating agencies which assign a credit quality rating for many

54 94 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands) investments. Credit quality ratings for obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not reported; however, credit quality ratings are reported for obligations of U.S. government agencies that are not explicitly guaranteed by the U.S. government. Based on these parameters, as of June 30, 2016, approximately 83.8 percent of investments of the Treasurer’s Pool are subject to credit quality risk reporting. Except for $77.8 million of corporate bonds rated lower medium, these investments are rated from upper medium to the highest quality, which indicates that the issuer has a strong capacity to pay principal and interest when due. As of June 30, 2015, approximately 88.0 percent of investments of the Pool are subject to credit quality risk reporting. Except for $87.4 million of corporate bonds rated lower medium and $25.0 million of corporate bonds rated very speculative, these investments are rated from upper medium to the highest quality.

Interest rate risk is the risk that changes in the market rpate of interest will adversely affect the value of an investment. In addition to statutory limitations on these types of investments, the State Treasurer’s investment policy mitigates interest rate risk through the use of maturity limits set to meet the needs of the individual fund if the Treasurer is investing for a specific fund rather than the Pool. The Treasurer actively manages the time to maturity in reacting to changes in the yield curve, economic forecasts, and liquidity needs of the participating funds. The Treasurer further limits investment risk by setting a minimum/maximum range for the percentage of investments subject to interest rate risk and by laddering maturities and credit ratings.

As of June 30, 2016, the weighted average maturity and the fair value of investments in the Treasurer’s Pool are as follows:

Weighted Fair Value of Weighted Weighted Average Fair Value of Investments Average Maturity Percent of Investments Percent of Investment Type Maturity Amount Pool Amount Pool Asset Backed Securities 2.585 $ 1,026,821 14.0% 1,025,405 13.9% Corporate Bonds 1.985 1,645,938 22.4% 1,668,442 22.5% U.S. Government Securities 1.343 3,608,040 49.0% 3,633,085 49.0% Commercial Paper 0.094 847,000 11.5% 846,606 11.4% Money Market Mutual Funds 0.000 230,000 3.1% 230,000 3.1% Mortgages - 0.0% 4,919 0.1% Total $ 7,357,799 100.0% 7,408,457 100.0%

As of June 30, 2015, the weighted average maturity of investments in the Treasurer’s Pool is as follows:

Weighted Average Maturity Percent of Investment Type Maturity Amount Pool Asset Backed Securities 2.528 $ 1,414,688 18.5% Corporate Bonds 2.196 1,743,777 22.9% U.S. Government Securities 1.339 3,629,340 47.5% Commercial Paper 0.063 485,000 6.3% Money Market Mutual Funds 0.010 370,000 4.8% Total $ 7,642,805 100.0%

The Treasurer’s Pool was not subject to foreign currency risk or concentration of credit risk in fiscal years ended June 30, 2016 or 2015. 55 95 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Additional information on investments of the State Treasurer’s Pool may be obtained in the State’s Comprehensive Annual Financial Report for the fiscal year ended June 30, 2016.

(5) Restricted Investments As of June 30, 2016 and 2015, the System’s restricted investments had a fair value of $25.2 million and $25.5 million, respectively. Investment earnings/losses consist of land fund interest and income/loss from investments held by the CSU Foundation. For fiscal years ending June 30, 2016 and 2015 there was an investment loss of $604 thousand and $723 thousand, respectively.

No investment types were purchased and sold during the years that were not owned as of June 30, 2016 and 2015. The System only invests in U.S. Treasury securities, which are federally guaranteed investments, as required by state law. The System’s restricted investments include investments held by the CSU Foundation that are invested in the CSU Foundation’s long-term endowment pool, which are not evidenced by securities that exist in physical or book form.

With the implementation of GASB Statement No. 72, Fair Value Measurement and Application, the System reports investments using the fair value hierarchy. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Valuation techniques are used to determine fair value by maximizing the use of relevant observable inputs and minimize the use of unobservable inputs. A three-tier hierarchy categorizes the inputs as follows:

Level 1 – quoted prices for identical assets in an active market.

Level 2 – quoted prices for similar assets in active markets, or identical or similar assets in markets that are not active, or inputs other than quoted prices that are observable for the asset such as interest rates.

Level 3 – unobservable inputs. In these situations, the organization develops inputs using the best information available in the circumstances. The System’s interest in investments held at the CSU Foundation fair value is determined by the Foundation as a proportionate share of total investments at June 30, 2016.

The following details each major category of the System’s investments at fair value as of June 30, 2016 and 2015:

June 30, 2016 Level 1 Level 2 Level 3 Total

U.S. Treasury obligations $ 12,239 - - 12,239

Interest in investments held by CSU Foundation - - 13,009 13,009 Total investments $ 12,239 - 13,009 25,248

56 96 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

June 30, 2015 Level 1Level 2Level 3Total

U.S. Treasury obligations $11,229 - - 11,229

Interest in investments held by CSU Foundation - - 14,241 14,241 Total investments $11,229 - 14,241 25,470

(a) Interest Rate Risk At June 30, 2016, the following System investments were subject to interest rate risk:

Weighted Average Maturity Duration Type of Investment Fair Value (in years) (in years)

U.S. Treasury obligations $ 12,239 0.62 -

Investments subject to interest rate risk $ 12,239

At June 30, 2015, the following System investments were subject to interest rate risk:

Weighted Average Maturity Duration Type of Investment Fair Value (in years) (in years)

U.S. Treasury obligations $ 11,229 0.63 -

Investments subject to interest rate risk $ 11,229

The System’s U.S. Treasury obligations are invested in accordance with Colorado Revised Statute 23-31-504. This statute requires these investments relating to the CSU land grant fund to be invested in specific types of investments, which includes U.S. Treasury obligations. The System does not have a specific policy relating to the management of interest rate risk.

Discretely presented component units – As of June 30, 2016, the Foundations’ investments consisted of various securities carried at fair market value as determined by quoted market prices on national exchanges. Alternative investments are valued at the position value (NAV) provided by the investment manager. This NAV is computed based on dealer quotations on the fair market value of the underlying

57 97 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands) securities, the majority of which are traded on national exchanges. Alternative investments are comprised of two investment types: absolute return and long/short investments. The goal of absolute return investments is to earn a stable return uncorrelated with equity markets. The goal of long/short investments is to outperform the S&P 500 Index over the long-term with less volatility.

The following details each major category of the CSU Foundation’s investments at fair market value as of June 30, 2016 and 2015: June 30, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents subject to investment management direction $ 7,578 — — 7,578 Equities: Large-cap 69,416 — — 69,416 International 18,763 39,721 — 58,484 Global — 37,702 — 37,702 Micro-cap — 16,089 — 16,089 Small/mid-cap 20,127 — — 20,127 Fixed income 31,870 — — 31,870 Alternative investments — 85,551 57,797 143,348 Short duration 39,694 — — 39,694 Student-managed investments 855 — — 855 Total $ 188,303 179,063 57,797 425,163

June 30, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents subject to investment management direction $ 1,700 — — 1,700 Equities: Large-cap 70,362 — — 70,362 International 20,557 41,418 — 61,975 Global — 35,755 — 35,755 Micro-cap — 17,073 — 17,073 Small/mid-cap 12,042 — — 12,042 Fixed income 17,243 — — 17,243 Alternative investments — 96,303 65,491 161,794 Short duration 19,870 — — 19,870 Student-managed investments 913 — — 913 Total $ 142,687 190,549 65,491 398,727

58 98 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Net investment income of the CSU Foundation consisted of the following for the fiscal years ended June 30, 2016 and 2015: June 30 2016 2015 Interest, dividends, and other income $7,273 5,534 Net unrealized and realized gain (loss) (13,729) 4,881 on investments Less investment management fees (3,590) (3,361) (10,046) 7,054 Less net investment loss on deposits held in custody for CSU 637 29 Total $(9,409) 7,083

The following details each major category of the CSU-Pueblo Foundation’s investments at fair market value for the fiscal years ended June 30, 2016 and 2015:

June 30, 2016 Level 1Level 2Level 3Total Marketable equity securities Domestic $15,437 - -15,437 International 4,172 - -4,172 Marketable debt securities Domestic 11,080 - -11,080 International 1,221 - -1,221 Real estate investment trust 623 - - 623 Master limited partnership 455 - - 455 Beneficial interest in remainder trusts - - 232 232 Total $32,988 - 232 33,220

June 30, 2015 Level 1 Level 2 Level 3 Total Marketable equity securities Domestic $ 15,313 - - 15,313 International 4,011 - - 4,011 Marketable debt securities Domestic 8,676 - - 8,676 International 1,225 - - 1,225 Real estate investment trust 636 - - 636 Master limited partnership 574 - - 574 Beneficial interest in remainder trusts - - 1,622 1,622 Total $ 30,435 - 1,622 32,057

59 99 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Net investment income of the CSU-Pueblo Foundation consisted of the following for the fiscal years ended June 30, 2016 and 2015:

2016 Temporarily UnrestrictedRestrictedTotal Dividend income $ 375 1,276 1,651 Interest income - 2 2 Realized loss - securities (11) (38) (49) Unrealized loss (331) (1,125) (1,456) Total investment income $ 33 115 148

2015 Temporarily Unrestricted Restricted Total Dividend income $ 330 1,789 2,119 Interest income - 3 3 Realized loss - securities (44) (239) (283) Unrealized loss (109) (592) (701) Total investment income $ 177 961 1,138

60 100 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(6) Accounts Receivable Accounts receivable are shown net of allowances for doubtful accounts in the accompanying Statements of Net Position. June 30 2016 2015 Student accounts receivable: $ 44,955 42,153 Less allowance for doubtful accounts (12,892) (10,988) Student accounts receivable, net $ 32,063 31,165

Student loans receivable: $ 31,038 31,401 Less allowance for doubtful accounts (7,561) (8,107) Student loans receivable, net 23,477 23,294 Less current portion (3,191) (2,911) Noncurrent student loans receivable, net $ 20,286 20,383

Grant and other accounts receivable: Sponsored programs $ 39,587 39,625 Commercial receivables 9,104 5,860 Conferences and summer programs 436 594 Insurance trust fund 1,502 1,628 Receivables from Foundation 1,512 2,951 Athletics 1,286 608 Self-funded operations 596 540 Other 13,204 4,189 Total grant and other accounts receivable 67,227 55,995 Less allowance for doubtful accounts (7,509) (5,804) Grant and other accounts receivable, net $ 59,718 50,191

61 101 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Discretely presented component unit – As of June 30, 2016 and 2015, the CSU Foundation’s pledges receivable consisted of the following:

June 30 2016 2015 Receivables due in less than one year $ 14,016 9,246 Receivables due in one to five years 28,832 16,275 Receivables due in more than five years 4,498 305 47,346 25,826 Less allowance for uncollectible pledges (1,184) (645) Less present value discounting (1,536) (937) $ 44,626 24,244

Unconditional promises to give (pledges receivable) are from various entities including foundations, corporations, and individuals. The discount factor utilized in the present value calculation is the five-year U.S. Treasury note rate as of June 30th in the fiscal year in which the commitment is made.

Pledges receivable from two donors at June 30, 2016 represented approximately 36 percent of net pledges receivable. Pledges receivable from two donors at June 30, 2015 represented approximately 41 percent of net pledges receivable.

Discretely presented component unit – As of June 30, 2016 and 2015, CSU-Pueblo Foundation’s unconditional promises to give consisted of the following:

June 30 20162015 Restricted for scholarships of other particular purposes$ 351 1,162 Less: Allowances for uncollectible unconditional promises to give(106) (106) Gross unconditional promises to give 245 1,056 Less: unamortized discount (2) (7) Net unconditional promises to give $ 243 1,049

Amounts due in: Less than one year 207 892 One to five years 36 157 Total $ 243 1,049

The allowance for uncollectible unconditional promises to give was arrived at by identifying specific donors that have failed to keep their promises and by applying a historical percentage of 1.5 percent to the remaining amount.

Unamortized discount was arrived at by discounting amounts to be received in the future by the average market rate earned on investments of two percent.

Discretely presented component unit – As of June 30, 2016, CSU-System Foundation’s receivables are recorded at cost and provisions for doubtful accounts have not been established as all receivables are deemed collectible. 62 102 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(7) Capital Assets

Following are the changes in capital assets for the fiscal year ended June 30, 2016: Balance Balance June 30, 2015 Additions Transfers Deletions June 30, 2016 Nondepreciable capital assets: Land $ 29,823 – 5,348 – 35,171 Land improvements 2,321 – – – 2,321 Construction in progress 99,111 296,976 (62,818) (3,350) 329,919 Collections 3,808 1,341 – – 5,149 Total nondepreciable capital assets 135,063 298,317 (57,470) (3,350) 372,560

Depreciable capital assets: Land and leasehold improvements 88,423 48 5,099 – 93,570 Buildings and improvements 1,514,193 674 49,739 – 1,564,606 Software 76,402 2,041 342 (207) 78,578 Equipment 272,948 20,723 2,290 (11,199) 284,762 Library materials 87,281 1,201 – (239) 88,243 Total depreciable capital assets 2,039,247 24,687 57,470 (11,645) 2,109,759

Less accumulated depreciation: Land and leasehold improvements 51,778 5,596 – – 57,374 Buildings and improvements 485,678 52,316 – – 537,994 Software 47,960 14,753 – (108) 62,605 Equipment 201,606 20,432 – (9,466) 212,572 Library materials 78,924 1,861 – (239) 80,546 Total accumulated depreciation 865,946 94,958 – (9,813) 951,091

Net depreciable capital assets 1,173,301 (70,271) 57,470 (1,832) 1,158,668 Total capital assets, net $ 1,308,364 228,046 – (5,182) 1,531,228

Land includes the following conservation easements: Catspaw Conservation Easement $ 3,155 Snow Mountain Conservation Easement 5,000 Elmgreen Conservation Easement 515 Ben Delatour Forest Legacy Conservation Easement 4,000 S. Boulder/Toll Family Conservation Easement 5,070 Sawtooth Mountain Conservation Easement 2,995 Total $ 20,735

63 103 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Following are the changes in capital assets for the fiscal year ended June 30, 2015:

Balance Balance June 30, 2014 Additions Transfers Deletions June 30, 2015 Nondepreciable capital assets: Land $ 24,753 – 5,070 – 29,823 Land improvements 2,321 – – – 2,321 Construction in progress 164,149 128,716 (189,313)(4,441)99,111 Collections 2,878 935 – (5) 3,808 Total nondepreciable capital assets194,101 129,651(184,243)(4,446)135,063

Depreciable capital assets: Land and leasehold improvements 83,347 – 5,076 – 88,423 Buildings and improvements 1,326,392 16,682 171,149 (30) 1,514,193 Software 73,118 2,517 767 – 76,402 Equipment 252,385 20,439 7,251 (7,127)272,948 Library materials 87,694 1,258 – (1,671)87,281 Total depreciable capital assets 1,822,936 40,896184,243(8,828) 2,039,247

Less accumulated depreciation: Land and leasehold improvements 46,055 5,723 – – 51,778 Buildings and improvements 438,191 47,506 – (19)485,678 Software 33,348 14,612 – – 47,960 Equipment 187,324 19,580 – (5,298)201,606 Library materials 78,478 2,117 – (1,671)78,924 Total accumulated depreciation783,396 89,538 – (6,988)865,946

Net depreciable capital assets 1,039,540 (48,642)184,243(1,840) 1,173,301 Total capital assets, net $ 1,233,641 81,009 – (6,286) 1,308,364

Land includes the following conservation easements: Catspaw Conservation Easement $ 3,155 Snow Mountain Conservation Easement 5,000 Elmgreen Conservation Easement 515 Ben Delatour Forest Legacy Conservation Easement4,000 S. Boulder/Toll Family Conservation Easement 5,070 Total $ 17,740 Interest expense capitalized, net of related interest income for the System, was $18.5 million and $7.5 million for the fiscal years ended June 30, 2016 and 2015, respectively.

64 104 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(8) Accrued Liabilities The current accrued liabilities balances as of June 30, 2016 and 2015 were comprised of:

June 30 2016 2015 Accrued payroll and benefits $ 58,759 68,562 Accrued interest payable 16,396 12,469 Other liabilities 1,820 1,414 Total $ 76,975 82,445

(9) Noncurrent Liabilities Noncurrent liability activity for the fiscal year ended June 30, 2016 was as follows:

Amounts Balance Balance Due Within June 30, 2015 Additions Reductions June 30, 2016 One Year Bonds and capital lease obligations: Revenue bonds and COPs payable $ 1,043,146 175,251 (24,654) 1,193,743 23,249 Capital leases payable 21,950 3,116 (4,838) 20,228 3,884 Total bonds and capital leases 1,065,096 178,367 (29,492) 1,213,971 27,133 Other liabilities: Deposits held for others 29,305 1,960 (5,413) 25,852 6,712 Other 8,334 45 (194) 8,185 2,411 Accrued compensated absences 52,026 3,409 – 55,435 2,939 Net pension liability 524,663 225,863 (171,808) 578,718 — Total noncurrent liabilities $ 1,679,424 409,644 (206,907) 1,882,161 39,195

65 105 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Noncurrent liability activity for the fiscal year ended June 30, 2015 was as follows:

Amounts Balance Balance Due Within June 30, 2014 Additions Reductions June 30, 2015 One Year Bonds and capital lease obligations: Revenue bonds and COPs payable $818,860 314,617 (90,331) 1,043,146 19,298 Capital leases payable 9,358 15,529 (2,937) 21,950 3,496 Total bonds and capital leases 828,218 330,146 (93,268) 1,065,096 22,794 Other liabilities: Deposits held for others 32,228 2,112 (5,035) 29,305 6,266 Other 7,288 2,170 (1,124) 8,334 2,388 Accrued compensated absences48,923 3,103 -52,026 2,701 Net pension liability 500,621 52,568 (28,526) 524,663 - Total noncurrent liabilities $ 1,417,278 390,099 (127,953) 1,679,424 34,149

(10) Revenue Bonds and Certificates of Participation (COPs) The revenue bonds consist of multiple issues to finance the acquisition, construction, repair, and equipping of various academic, auxiliary, and research facilities of the System. The revenue bonds are payable semiannually and monthly, have serial maturities, may contain sinking fund requirements, and certain bonds contain optional redemption provisions. The optional redemption provisions allow the System to redeem at various dates, portions of the outstanding revenue bonds at 100 percent of the principal amount of the revenue bonds redeemed. Payment of the principal and interest on certain bonds is either insured by various financial guarantee insurance policies or qualifies for payment under the State Intercept Program, which provides payment by the State Treasurer if payment is not made by the due date.

On September 16, 2015, the System issued $156.3 million at a premium, in System Enterprise Revenue Bonds, Series 2015 E, F. The proceeds of Series 2015 E, F, which totaled $175.3 million after consideration of the premium, will be used to construct a 152,000 gross square foot ("gsf") biology building, a 105,000 gsf medical center building, a 30,000 gsf plant environmental research center, a new 4-story parking structure, a new surface parking lot and 85,000 gsf of academic space to be located on the east side of the new Stadium. In addition, the proceeds will pay capitalized interest and pay the costs of issuing the Series 2015 E-1, 2015 E-2 and 2015 F Bonds.

On April 28, 2015, the System issued $235.2 million in System Enterprise Revenue Bonds, Series 2015 A, B, C. The proceeds from the sale of Series 2015 A, B, C are currently being used to construct a 643,000 gsf multipurpose stadium to be located between Lake Street and Pitkin Street in Fort Collins, Colorado, to advance refund a portion of the outstanding Series 2007 B Bonds, Series 2008 A Bonds and Series 2009 A Bonds, pay capitalized interest on the 2015 A, B Bonds and pay the costs of issuing the Series 2015 A, B, C Bonds.

On April 28, 2015, the System issued $66.7 million in System Enterprise Revenue Bonds, Series 2015 D. The proceeds of Series 2015 D are currently being used to defray a portion of the cost of financing certain

66 106 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

2015 Improvement Projects, pay capitalized interest and pay the costs of issuing the Series 2015 D Bonds.

A general description of each bond issue, original issuance amount, and the amount outstanding as of June 30, 2016 and 2015 is detailed below.

Revenue bonds and COPs payable consisted of the following at June 30, 2016 and 2015:

June 30 Interest Range 2016 2015

Colorado State University System: Colorado State University System Enterprise Revenue Bonds of 2007 A, issued in the original amount of $160.7 million and mature in varying annual amounts to March 2037. $26.9 million advance refunded with 2012 B, $110.8 million advance refunded with 2013 A, and $3.8 million advance refunded with 2013 B. 4.625%-5.250% $ 19,185 19,185

Colorado State University System Enterprise Revenue Refunding Bonds of 2007 B, issued in the original amount of $34.3 million and mature in varying annual amounts to March 2021. $2.5 million advance refunded with 2015 C. 4.000%-5.000% 4,570 7,275

Colorado State University System Enterprise Revenue Bonds of 2008 A, issued in the original amount of $83.3 million and mature in varying annual amounts to March 2038. $64.7 million advance refunded with 2015 C. 3.000%-5.000% 8,480 10,400

Colorado State University System Enterprise Revenue Bonds of 2009 A, issued in the original amount of $56.1 million and mature in varying annual amounts to March 2039. $54.4 million advance refunded with 2013 A and $0.3 million advance refunded with 2015 C. 3.000%-5.000% 845 870

Colorado State University System Enterprise Revenue Bonds of 2010 A, issued in the original amount of $25.3 million and mature in varying annual amounts to March 2020. 4.000%-5.000% 13,870 16,950

67 107 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

June 30 Interest Range 2016 2015 Colorado State University System Enterprise Revenue Bonds of 2010 B, issued in the original amount of $40.3 million and mature in varying annual amounts to March 2033. 4.900%-5.957% $ 40,335 40,335

Colorado State University System Enterprise Revenue Bonds of 2010 C, issued in the original amount of $33.3 million and mature in varying annual amounts to March 2040. 6.057% 33,250 33,250

Colorado State University System Enterprise Revenue Bonds of 2012 A, issued in the original amount of $126.2 million and mature in varying annual amounts to March 2044. 2.000%-5.000% 123,665 124,970

Colorado State University System Enterprise Revenue Refunding Bonds of 2012 B, issued in the original amount of $54.1 million and mature in varying annual amounts to March 2035. 2.000%-5.000% 52,150 52,580

Colorado State University System Enterprise Revenue Refunding Bonds of 2012 C, issued in the original amount of $5.3 million and mature in varying annual amounts to March 2017. 0.728%-1.864% 1,095 2,170

Colorado State University System Enterprise Revenue and Revenue Refunding Bonds of 2013 A, issued in the original amount of $182.0 million and mature in varying annual amounts to March 2043. 1.000%-5.000% 170,095 175,445

Colorado State University System Enterprise Revenue Refunding Bonds of 2013 B, issued in the original amount of $16.7 million and mature in varying annual amounts to March 2020. 0.450%-2.073% 7,065 8,780

Colorado State University System Enterprise Revenue Bonds of 2013 C, issued in the original amount of $18.6 million and mature in varying annual amounts to March 2044. 5.000%-5.250% 18,610 18,610

68 108 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

June 30 Interest Range 2016 2015 Colorado State University System Enterprise Revenue Bonds of 2013 D, issued in the original amount of $7.9 million and mature in varying annual amounts to March 2028. 0.963%-5.251% $ 6,940 7,400

Colorado State University System Enterprise Revenue Bonds of 2013 E, issued in the original amount of $138.7 million and mature in varying annual amounts to March 2045. 3.000%-5.000% 137,700 138,230

Colorado State University System Enterprise Revenue Bonds of 2015 A, issued in the original amount of $134.7 million and mature in varying annual amounts to March 2055. 4.000%-5.000% 134,730 134,730

Colorado State University System Enterprise Revenue Bonds of 2015 B, issued in the original amount of $32.8 million and mature in varying annual amounts to March 2030. 2.688%-4.081% 32,815 32,815

Colorado State University System Enterprise Revenue Refunding Bonds of 2015 C, issued in the original amount of $67.7 million and mature in varying annual amounts to March 2038. 2.000%-5.000% 67,090 67,675

Colorado State University System Enterprise Revenue Bonds of 2015 D, issued in the original amount of $66.7 million and mature in varying annual amounts to March 2047. Variable 66,655 66,655

Colorado State University System Enterprise Revenue Bonds of 2015 E-1, issued in the original amount of $96.5 million and mature in varying annual amounts to March 2047. 5.000% 96,490 -

Colorado State University System Enterprise Revenue Bonds of 2015 E-2, issued in the original amount of $42.1 million and mature in varying annual amounts to March 2033. 5.000% 42,125 -

69 109 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

June 30 Interest Range 2016 2015

Colorado State University System Enterprise Revenue Bonds of 2015 F, issued in the original amount of $17.7 million and mature in varying annual amounts to March 2023. 1.750%-5.000% $ 16,975 -

Unamortized bond premium/discount 97,007 82,702 Total System Bonds 1,191,742 1,041,027

Colorado State University - Pueblo: Portion of the State of Colorado Certificate of Participation to remodel the Academic Resource Center (Library). Payable annually with a final maturity in 2029. 5.100% 2,001 2,119

Total System Bonds and Certificates of Participation $ 1,193,743 1,043,146

The scheduled maturities of the revenue bonds and COPs as of June 30, 2016 are as follows:

Total PrincipalInterestPayments 2017 $23,249 49,906 73,155 2018 23,860 49,309 73,169 2019 24,781 48,550 73,331 2020 25,854 47,438 73,292 2021 27,987 46,238 74,225 2022-2026 152,676 212,728 365,404 2027-2031 181,304 175,362 356,666 2032-2036 220,265 128,638 348,903 2037-2041 189,750 77,054 266,804 2042-2046 131,890 35,568 167,458 2047-2051 51,050 15,089 66,139 2052-2055 44,070 4,637 48,707 Total debt service maturities 1,096,736 890,5171,987,253 Unamortized bond premium/discount 97,007 Total $1,193,743

The System Enterprise Revenue Bonds are secured by a pledge of 10 percent of all net revenues derived at the System from charges to students for the provision of general instruction by the System, CSU facilities fees (80 percent of first $10 credit hour fee and 100 percent of additional $5 per credit hour fee), CSU- Pueblo facilities fees (100 percent), net revenues derived from the operation of the auxiliary pledged facilities, and net revenues of the CSU Research Building Revolving Fund (RBRF) enterprise. Revenues from the RBRF enterprise include all revenues derived by CSU from the operation of the pledged facilities including allocated recoveries on research contracts and grants performed under the auspices of CSU. Investment earnings from revenue sources are also included. See Note 12 for more information regarding 70 110 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

these pledged revenues. The Revenue Bonds are special limited obligations of the Board of Governors and do not constitute a general obligation of the Board or the System.

There were no material events regarding rating changes to report for fiscal years ended June 30, 2016 and 2015.

(11) Defeased Obligations On April 28, 2015, the System issued $67.7 million in System Enterprise Revenue Refunding Bonds, Series 2015 C with an average interest rate of 4.27 percent to advance refund $82.4 million of outstanding bonds with an average interest rate of 4.92 percent. Refunded bonds included the Enterprise System Revenue Bonds, Series 2007 B ($2.5 million); System Enterprise Revenue Bonds, Series 2008 A ($64.7 million); and System Enterprise Revenue Bonds, Series 2009 A ($255 thousand). Net proceeds of $75.3 million were deposited with an escrow agent. The System completed the 2015 C refunding to reduce its total debt service payments over the next 23 years by $8.3 million and obtain an economic gain (difference between the present value of the debt service payments on the old debt and new debt) of $5.1 million. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $7.5 million. This difference is reported in the accompanying financial statements as a deferred outflow and is being amortized through fiscal year 2038.

Prior to Series 2015 C, the System issued System Enterprise Revenue Bonds, Series 2013 A, B in fiscal year 2013; System Enterprise Revenue Bonds, Series 2012 B, C in fiscal year 2012; and System Enterprise Revenue Bonds, Series 2007 B in fiscal year 2008. The escrow deposits from Series 2015 C; Series 2013 A, B; Series 2012 B, C; and Series 2007 B are being used to purchase certain U.S. governmental obligations. The principal and interest from the U.S. governmental obligations will be sufficient to enable the escrow agent to make all future debt service payments on the refunded bonds and COPs. As a result, the refunded bonds and COPs are considered to be defeased and the liability for those bonds is no longer reflected in the Statements of Net Position.

The following bonds and certificates of participation were included in the refundings and have since been redeemed: Auxiliary Facilities Enterprise Refunding and Improvement Revenue Bonds, Series 1996; Auxiliary Facilities Enterprise Refunding and Improvement Revenue Bonds, Series 1997; Certificates of Participation, Series 1997; Student Sports Recreational Facilities Revenue Bonds, Series 1998; Research Building Revolving Fund Enterprise Revenue Bonds, Series 2001; Enterprise System Refunding and Improvement Revenue Bonds, Series 2003 A (partially refunded on 2007 B and fully refunded on 2012 C); Enterprise System Revenue Bonds, Series 2003 B (fully refunded on 2012 B); Enterprise System Revenue Bonds, Series 2005 B (partially refunded on 2012 B and fully refunded on 2013 A); and Research Building Revolving Fund Enterprise Revenue Bonds, Series 2005 A (fully refunded on 2007 B).

System Enterprise Revenue Bonds, Series 2007 A (partially refunded on 2012 B and partially refunded on 2013 A, B); System Enterprise Revenue Bonds, Series 2007 C (partially refunded on 2013 B); System Enterprise Revenue Bonds, Series 2007 B (partially refunded on 2015 C); System Enterprise Revenue Bonds, Series 2008 A (partially refunded on 2015 C); and System Enterprise Revenue Bonds, Series 2009 A (partially refunded on 2013 A and 2015 C) were also refunded and have remaining defeased obligations at June 30, 2016 as follows:

71 111 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Original AmountBalance RefundedJune 30, 2016 CSU System Enterprise Revenue Bonds, Series 2007 A$141,480 141,480 CSU System Enterprise Revenue Bonds, Series 2007 C 14,500 12,400 CSU System Enterprise Revenue Bonds, Series 2007 B 2,480 2,480 CSU System Enterprise Revenue Bonds, Series 2008 A 64,745 64,745 CSU System Enterprise Revenue Bonds, Series 2009 A 54,615 53,210 $277,820 274,315

(12) Pledged Revenues and Related Expenses

CSU and CSU-Pueblo are required to pledge certain revenues and report related expenses in accordance with the various bond resolutions. The pledged revenues and related expenses were as follows:

System Enterprise Revenue and Revenue Refunding Bonds (including Tuition and University Facilities Fees Revenue Bonds)

Pledged by 10 percent System tuition revenues, CSU facilities fees (80 percent of first $10 credit hour fee and 100 percent of additional $5 per credit hour fee), CSU-Pueblo facilities fees (100 percent), CSU Research Building Revolving Fund revenues, and remaining auxiliary revenue. June 30 2016 2015 Operating revenues $ 210,187 194,782 Operating expenses (112,314)(107,477) Pledged revenues over operating expenses 97,873 87,305 Net nonoperating expenses (53,854)(32,327) Other revenues and transfers 66,957 25,403 Net pledged revenues $110,976 80,381

The debt covenants for the above bonds require indirect cost recoveries from research-related grants to be pledged. The pledged revenue reported above includes $3.4 million and $3.0 million in indirect cost recoveries for the fiscal years ended June 30, 2016 and 2015, respectively, which is the amount of actual indirect cost recoveries used to support the related bond activity. The remaining amount of indirect cost recoveries required to be pledged is $47.6 million and $45.6 million for the fiscal years ended June 30, 2016 and 2015, respectively.

The revenue bonds contain provisions to establish and maintain reasonable fees, rates, and other charges to ensure gross revenues are sufficient for debt service coverage. The System is also required to comply with various other covenants while the bonds are outstanding. Managements of the two institutions believe the universities have met all debt service coverage ratios and have complied with all bond covenants.

72 112 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(13) Capital Lease Obligations The following is a schedule of the System’s future minimum lease payments for obligations under capital leases for each of the five subsequent fiscal years and for five-year increments thereafter.

Total Fiscal year ending June 30: 2017 $ 4,059 2018 3,309 2019 2,130 2020 1,536 2021 1,243 2022-2026 10,795 Minimum future lease payments 23,072 Less amount representing interest 2,844 Present value of minimum lease payments $ 20,228

Capital lease agreements have been utilized to provide for the use of property and equipment. As of June 30, 2016 and 2015, respectively, the System had capital lease obligations in effect with capitalized asset costs of $29.9 million and $31.8 million; accumulated depreciation of $7.3 million and $6.9 million; and related outstanding liabilities of $20.2 million and $22.0 million.

(14) Operating Leases The following is a schedule of the System’s aggregate minimum rental commitments for operating leases of real and personal property for each of the five subsequent fiscal years and for five-year increments thereafter. Future Minimum Obligations For Operating Leases Fiscal year ending June 30: 2017 $ 3,310 2018 2,947 2019 2,626 2020 2,166 2021 850 2022-2026 1,944 Total $ 13,843

Rent expense was $3.1 million for fiscal year ended June 30, 2016 and $2.7 million for fiscal year ended June 30, 2015.

CSU-Pueblo leases a football stadium from a non-profit organization. The lease expires June 12, 2028 and is renewable subject to CSU-Pueblo meeting certain requirements as specified in the lease terms. The

73 113 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

annual rent of the lease is $100; however, CSU-Pueblo pays the annual costs of maintenance and upkeep for the lease premises.

(15) Net Position The System is subject to multiple constraints, including those imposed by Colorado Constitutional and related legislative actions, State of Colorado statutes, and bond covenants in conjunction with statutory provisions on pledging revenues of the auxiliary facilities.

Student loan money is expended according to external restrictions imposed by the program funding sources. The federal programs are administered according to Department of Education Blue Book guidelines. The state match money is restricted by the Colorado Commission on Higher Education policy for student loan programs. The amounts restricted are $26.5 million and $26.2 million and are reported as restricted net position - expendable on the financial statements as of June 30, 2016 and 2015, respectively.

The auxiliary facilities included in the CSU Student and Faculty Services have outstanding debt that is supported by pledges of revenue earned by the facilities. Under the bond covenants and statutes in effect at the time of debt issuance, any excess reserves earned by the auxiliary facilities are restricted for use by the auxiliary operations. The amount restricted of $47.9 million and $35.1 million is reported as restricted net position - expendable on the financial statements as of June 30, 2016 and 2015, respectively.

Colorado Revised Statute 23-31-135 requires a support fee to be annually assessed to cooperative state or accountable students in the System’s professional veterinary medicine program. The statute specifies that this fee must be credited to a reserve account and used for renovation projects and for the acquisition or replacement of equipment. As of June 30, 2016 and 2015, this reserve had net position of $343 thousand and $564 thousand, respectively. These amounts are reported as restricted net position - expendable on the financial statements.

Total restricted net position was as follows: June 30 2016 2015 Restricted for nonexpendable purposes: Scholarships, research and other $ 12,864 14,221 Endowment/Land Grant 12,557 11,930 Total $ 25,421 26,151 Restricted for expendable purposes: Endowment/Land Grant $ 1,145 1,207 Student loans 26,471 26,157 Colorado Water Institute 311 333 Gifts 3,943 1,656 Plant fund gifts not capitalized 1,703 3,251 Auxiliary pledged net assets 47,929 35,060 Tuition and fee pledged assets 14,278 9,982 Research Building Revolving Fund 4,744 4,116 Equipment reserve for Vet Med 343 564 Colorado State Forest Service legislative funds 9,047 8,486 Workstudy 99 138 Other — 32 Total $ 110,013 90,982

74 114 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Although other amounts reflected in unrestricted net position are not externally restricted, they may be internally designated by the System’s administration for various purposes.

In regard to the net assets of the CSU Foundation, temporarily restricted net assets and the income earned on permanently restricted net assets, consisting of endowment funds to be held in perpetuity, are available to support CSU by providing funds for student scholarships, capital improvements, research, institutional support, and other educational purposes and activities. Also, as of June 30, 2016 and 2015, the CSU Foundation’s Board has designated $21.4 million and $27.9 million, respectively, of the unrestricted net assets to be used for board-designated endowments.

In regard to the net assets of the CSU-Pueblo Foundation, temporarily restricted net assets and the income earned on permanently restricted net assets, consisting of endowment funds to be held in perpetuity, are available to support CSU-Pueblo by providing funds for athletics, scholarships, repairs of facilities, etc. Also, as of June 30, 2016 and 2015, CSU-Pueblo Foundation’s Board has designated $1.1 million and $4.7 million, respectively, of the unrestricted net assets to be used for operating reserve for subsequent years’ expense, soccer/lacrosse complex deficit, University Center renovation and enhancements, special project awards, and University personnel discretionary funds.

(16) Commitments Outstanding purchase order commitments against future funds not reflected in the financial statements at June 30, 2016 were $202.6 million. These outstanding purchase order commitments included $131.8 million of System capital construction commitments. CSU capital construction commitments included approximately $37.5 million for the Biology Building, $31.3 million for the CSU Health & Medical Center, $21.0 million for the Multi-Purpose Stadium, $19.2 million for the Chemistry Building, $11.1 million for the Aggie Village North Redevelopment, $2.6 million for the South College Parking Garage, and $2.3 million for the Prospect Road Underpass. The remaining capital construction commitments were for other smaller projects at CSU and CSU-Pueblo. Of the remaining noncapital purchase order commitments, $31.4 million were related to CSU sponsored contracts and grants.

In addition to purchase order commitments, CSU has contracted obligations of $30.7 million at June 30, 2016 related to employment hiring incentives and shared costs on long-term federal contracts. The hiring incentives arise in recruiting faculty and research scientists whereby the University commits to pay for various laboratory remodeling, equipment and other costs that are important to the person in accepting the position. This obligation is binding on the University upon acceptance of the employment offer. The shared cost obligations arise in connection with federal contracts and grants in which the University agrees to pay for certain costs beyond what would otherwise be reimbursed by the sponsor under the contract or grant. Although the University can exercise cancellation clauses to avoid these shared cost obligations, the University has not used that option to avoid such obligations, and such obligation is considered highly probable. In both cases, settlement of the obligation involves payments to third parties, generally within three years.

Outstanding commitments at June 30, 2016 were:

Purchase order commitments $ 202,628 Shared cost obligations on long-term revenue contracts 16,599 Obligations under accepted employment offers 14,128 Total $ 233,355

75 115 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(17) Employment Benefits Employees of the System, eligible for retirement benefits, participate in one of three retirement plans. Eligible student employees participate in a Student Employee Retirement Plan (SERP), which is funded solely by student contributions. The SERP is a defined contribution plan administered by a consortium of institutions of higher education in the state. All other eligible employees of the System participate in one of two additional plans, the State Division Trust Funds (SDTF), a defined benefit pension fund administered by the Public Employees’ Retirement Association (PERA) or an Optional Retirement Plan – The Defined Contribution Plan for Retirement (DCP), subject to eligibility criteria defined by PERA and the University for each separate governing entity.

The System’s total payroll for the fiscal years ended June 30, 2016 and 2015 was approximately $609.0 million and $583.2 million, respectively. Payroll for employees covered by the PERA plan, the optional defined contribution plan, and the student retirement plan was approximately $151.4 million, $378.6 million, and $17.4 million, respectively, for the fiscal year ended June 30, 2016 and $149.3 million, $359.5 million, and $19.0 million, respectively, for the fiscal year ended June 30, 2015. The remaining employees were not eligible for participation in any of the System’s plans.

(a) PERA Defined Benefit Pension Plan Summary of Significant Accounting Policies

The System participates in the State Division Trust Fund (SDTF), a cost-sharing multiple-employer defined benefit pension fund administered by PERA. The net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position of the SDTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Plan Description

Eligible employees of the System are provided with pensions through the SDTF. Plan benefits are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable provision of the federal Internal Revenue Code. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. PERA issues a publicly available comprehensive annual financial report that can be obtained at www.copera.org./investments/pera-financial-reports.

Benefits Provided

PERA provides retirement, disability, and survivor benefits. Retirement benefits are determined by the amount of service credit earned and/or purchased, highest average salary, the benefit structure(s) under which the member retires, the benefit option selected at retirement, and age at retirement. Retirement eligibility is specified in tables set forth at C.R.S. § 24-51-602, 604, 1713, and 1714. The lifetime retirement benefit for all eligible retiring employees under the PERA Benefit Structure is the greater of the:  Highest average salary multiplied by 2.5 percent and then multiplied by years of service credit.

76 116 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

 The value of the retiring employee’s member contribution account plus a 100 percent match on eligible amounts as of the retirement date. This amount is then annuitized into a monthly benefit based on life expectancy and other actuarial factors. In all cases the service retirement benefit is limited to 100 percent of highest average salary and also cannot exceed the maximum benefit allowed by federal Internal Revenue Code. Members may elect to withdraw their member contribution accounts upon termination of employment with all PERA employers; waiving rights to any lifetime retirement benefits earned. If eligible, the member may receive a match of either 50 percent or 100 percent on eligible amounts depending on when contributions were remitted to PERA, the date employment was terminated, whether five years of service credit has been obtained and the benefit structure under which contributions were made.

Benefit recipients who elect to receive a lifetime retirement benefit are generally eligible to receive post-retirement cost-of-living adjustments (COLAs), referred to as annual increases in the C.R.S. Benefit recipients under the PERA benefit structure who began eligible employment before January 1, 2007, receive an annual increase of two percent, unless PERA has a negative investment year, in which case the annual increase for the next three years is the lesser of two percent or the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the prior calendar year. Benefit recipients under the PERA benefit structure who began eligible employment after January 1, 2007, receive an annual increase of the lesser of two percent or the average CPI-W for the prior calendar year, not to exceed 10 percent of PERA’s Annual Increase Reserve (AIR) for the SDTF.

Disability benefits are available for eligible employees once they reach five years of earned service credit and are determined to meet the definition of disability. The disability benefit amount is based on the retirement benefit formula shown above considering a minimum 20 years of service credit, if deemed disabled.

Survivor benefits are determined by several factors, which include the amount of earned service credit, highest average salary of the deceased, the benefit structure(s) under which service credit was obtained, and the qualified survivor(s) who will receive the benefits.

Contributions Eligible employees and the System are required to contribute to the SDTF at a rate set by Colorado statute. The contribution requirements are established under C.R.S. § 24-51-401, et seq. Eligible employees are required to contribute eight percent of their PERA-includable salary. The employer contribution requirements for all employees are summarized in the table below:

77 117 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Fiscal Year 2015 Fiscal Year 2016 CY14 CY15 CY16 7/1 to 12/31 1/1 to 6/30 7/1 to 12/31 1/1 to 6/30 Employer contribution rate 10.15% 10.15% 10.15% 10.15% Apportioned to the Health Care Trust Fund 1 -1.02% -1.02% -1.02% -1.02% Apportioned to the SDTF 9.13% 9.13% 9.13% 9.13% Amortization Equalization Disbursement (AED)2 3.80% 4.20% 4.20% 4.60% Supplemental Amortization Equalization Disbursement (SAED)2 3.50% 4.00% 4.00% 4.50%

Total employer contribution rate to the SDTF 16.43% 17.33% 17.33% 18.23%

1As specified in C.R.S. Section 24-51-208(1)(f). 2As specified in C.R.S. Section 24-51-411

The rates are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42).

Employer contributions are recognized by the SDTF in the period in which the compensation becomes payable to the member and the System is statutorily committed to pay the contributions to the SDTF. Employer contributions recognized by the SDTF from the System were $28.8 million, $27.0 million, and $25.2 million for the years ended June 30, 2016, 2015 and 2014, respectively, including the 1.02 percent apportioned to the Health Care Trust Fund. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions As of fiscal years ended June 30, 2016 and 2015, the System reported a liability of $578.7 million and $524.7 million, respectively, for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2014. Standard update procedures were used to roll forward the total pension liability to December 31, 2015. The System proportion of the net pension liability was based on System contributions to the SDTF for the calendar year 2015 relative to the total contributions of participating employers to the SDTF. At December 31, 2015, the System proportion was 5.50 percent, which was a decrease of 0.08 percent from its proportion measured as of December 31, 2014. For the fiscal years ended June 30, 2016 and 2015, the System recognized pension expense of $49.7 million and $40.7 million, respectively. At June 30, 2016, the System reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

78 118 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual experience $ 8,427 18 Changes of assumptions or other inputs - 6,850 Net difference between projected and actual earnings on pension plan investments 43,594 - Changes in proportion and differences between contributions recognized and proportionate share of 745 6,628 contributions Contributions subsequent to the measurement date 13,930 - Total $ 66,696 13,496

At June 30, 2015, the System reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual experience $ - 39 Net difference between projected and actual earnings on pension plan investments 10,698 - Changes in proportion and differences between contributions recognized and proportionate share of 261 2,407 contributions Contributions subsequent to the measurement date 13,029 - Total $ 23,988 2,446

$13.9 million reported as deferred outflows of resources related to pensions, resulting from contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Total Fiscal year ending June 30: 2017 $ 8,733 2018 10,056 2019 11,556 2020 8,925 Total $ 39,270

Actuarial Assumptions The total pension liability in the December 31, 2014 actuarial valuation was determined using the following actuarial cost method, actuarial assumptions and other inputs:

79 119 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Actuarial cost method Entry age Price inflation 2.80 % Real wage growth 1.10 % Wage inflation 3.90 % Salary increases, including wage inflation 3.90 – 9.57 % Long-term investment Rate of Return, net of pension plan investment expenses, including price inflation 7.50 % Future post-retirement benefit increases: PERA Benefit Structure hired prior to 1/1/07 2.00 % PERA Benefit Structure hired after 12/31/06 (ad hoc, substantively automatic) Financed by the Annual Increase Reserve

Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on a projection of Scale AA to 2020 with Males set back one year, and Females set back two years. The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an actuarial experience study for the period January 1, 2008 through December 31, 2011, adopted by PERA’s Board on November 13, 2012, and an economic assumption study, adopted by PERA’s Board on November 15, 2013 and January 17, 2014. Changes to assumptions or other inputs since the December 31, 2013, actuarial valuation are as follows:  The following programming changes were made: o Valuation of the full survivor benefit without any reduction for possible remarriage. o Reflection of the employer match on separation benefits for all eligible years. o Reflection of one year of service eligibility for survivor annuity benefit. o Refinement of the 18-month annual increase timing. o Refinements to directly value certain and life, modified cash refund and pop-up benefit forms.  The following methodology changes were made: o Recognition of merit salary increases in the first projection year. o Elimination of the assumption that 35 percent of future disabled members elect to receive a refund. o Removal of the negative value adjustment for liabilities associated with refunds of future terminating members. o Adjustments to the timing of the normal cost and unfunded actuarial accrued liability payment calculations to reflect contributions throughout the year. The SDTF’s long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. As of the November 15, 2013, adoption of the long-term expected rate of return by the PERA Board, the target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: 80 120 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

10 Year Expected Geometric Asset Class Target AllocationReal Rate of Return U.S. Equity - Large Cap 26.76% 5.00% U.S. Equity - Small Cap 4.40% 5.19% Non U.S. Equity - Developed 22.06% 5.29% Non U.S. Equity - Emerging 6.24% 6.76% Core Fixed Income 24.05% 0.98% High Yield 1.53% 2.64% Long Duration Gov't/Credit 0.53% 1.57% Emerging Market Bonds 0.43% 3.04% Real Estate 7.00% 5.09% Private Equity 7.00% 7.15% Total 100.00%

In setting the long-term expected rate of return, projections employed to model future returns provide a range of expected long-term returns that, including expected inflation, ultimately support a long-term expected rate of return assumption of 7.50 percent. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent. The projection of cash flows used to determine the discount rate applied the actuarial cost method and assumption shown above. In addition, the following methods and assumptions were used in the projection of cash flows:  Total covered payroll for the initial projection year consists of the covered payroll of the active membership present on the valuation date and the covered payroll of future plan members assumed to be hired during the year. In subsequent projection years, total covered payroll was assumed to increase annually at a rate of 3.90 percent.  Employee contributions were assumed to be made at the current member contribution rate. Employee contributions for future plan members were used to reduce the estimated amount of total service costs for future plan members.  Employer contributions were assumed to be made at rates equal to the fixed statutory rates specified in law, including current and future AED and SAED, until the Actuarial Value Funding Ratio reaches 103 percent, at which point, the AED and SAED will each drop 0.50 percent every year until they are zero. Additionally, estimated employer contributions included reductions for the funding of the AIR and retiree health care benefits. For future plan members, employer contributions were further reduced by the estimated amount of total service costs for future plan members not financed by their member contributions.  Employer contributions and the amount of total service costs for future plan members were based upon a process used by the plan to estimate future actuarially determined contributions assuming an analogous future plan member growth rate.  The AIR balance was excluded from the initial fiduciary net position, as, per statute, AIR amounts cannot be used to pay benefits until transferred to either the retirement benefits reserve or the survivor benefits reserve, as appropriate. As the ad hoc post-retirement benefit increases financed by the AIR are defined to have a present value at the long-term expected rate of return

81 121 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

on plan investments equal to the amount transferred for their future payment, AIR transfers to the fiduciary net position and the subsequent AIR benefit payments have no impact on the Single Equivalent Interest Rate (SEIR) determination process when the timing of AIR cash flows is not a factor (i.e., the plan’s fiduciary net position is not projected to be depleted). When AIR cash flow timing is a factor in the SEIR determination process (i.e., the plan’s fiduciary net position is projected to be depleted), AIR transfers to the fiduciary net position and the subsequent AIR benefit payments were estimated and included in the projections.  Benefit payments and contributions were assumed to be made at the end of the month. Based on the above actuarial cost method and assumptions, the SDTF’s fiduciary net position was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The discount rate determination does not use the Municipal Bond Index Rate. There was no change in the discount rate from the prior measurement date. Sensitivity of the System Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the proportionate share of the net pension liability calculated using the discount rate of 7.50 percent, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage-point higher (8.50 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.50%) (7.50%) (8.50%) Proportionate share of the net pension liability $ 731,129 578,718 451,232 Pension Plan Fiduciary Net Position Detailed information about the SDTF’s fiduciary net position is available in PERA’s comprehensive annual financial report which can be obtained at www.copera.org/investments/pera-financial-reports. Adoption of New Accounting Standard

Effective July 1, 2014, the System adopted the provisions of Governmental Accounting Standards Board Statement No. 68 Accounting and Financial Reporting for Pensions - An Amendment to GASB Statement No. 27 (GASB Statement No. 68), which was amended effective July 1, 2015 by Governmental Accounting Standards Board Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Statement No. 68 requires the System, as a participant in the multiple-employer cost-sharing PERA defined benefit retirement program to record its proportionate share, as defined in GASB Statement No. 68, of PERA’s unfunded pension liability.

The System has no legal obligation to fund this shortfall, nor does it have any ability to affect funding, benefit or annual required contribution decisions made by PERA or the General Assembly.

(b) Voluntary Tax-Deferred Retirement Plans PERA offers a voluntary 401(k) plan entirely separate from the Defined Benefit Pension Plan. Certain agencies and institutions of the State offer 403(b) or 401(a) plans. The PERA Deferred Compensation Plan (457) was established July 1, 2009, as a continuation of the State’s deferred compensation plan 82 122 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

which was established for state and local government employees in 1981. At July 1, 2009, the State’s administrative functions for the 457 plan were transferred to PERA, where all cost of administration and funding are borne by the plan participants.

(c) University Optional Retirement Plan – The Defined Contribution Plan for Retirement (DCP) Under the University’s optional retirement plan, all Academic Faculty, Administrative Professionals, Post-Doctoral Fellows, Veterinary Interns and Clinical Psychology Interns appointed on or after April 1, 1993, are required as a condition of employment under Colorado law to participate in either the University’s Defined Contribution Plan (DCP) for Retirement or, in very limited cases, in the PERA Defined Benefit plan (as eligibility permits). DCP participants may select from three investment companies as follows:

1. Fidelity Investments / MetLife (eligible Faculty/Staff at CSU-Pueblo do not have access to this investment company) 2. Teachers Insurance and Annuity Association (TIAA) 3. Variable Annuity Life Insurance Corporation (VALIC)

The defined contribution retirement plans are established pursuant to state statute (24-54.5-101 to 24-54.5-107 CRS). The CSU plan was adopted by the Board of Governors in December 1992 and the CSU-Pueblo plan was adopted in April 1993. The Defined Contribution Retirement Plan is a qualified plan under Section 401(a) of the IRC. CSU and CSU-Pueblo are the Plan Sponsors. All participants contribute the required 8 percent of eligible salary. As required, CSU provides a matching contribution of 10.6 percent of eligible salary for all “permanent” appointees (those with regular, special and senior teaching appointments at half-time or greater) and for temporary appointees with appointments of half-time or greater for the second and subsequent consecutive year(s). CSU-Pueblo provides a matching contribution of 10.7 percent, as required, of eligible salary for all nonstudent employees, including those employees at less than half-time and nonstudent temporary, hourly employees. Both employee and employer contributions are vested immediately. Investments are participant-directed within the funds available through the authorized investment companies. The System’s aggregate contribution to the above three vendors was equal to 10.6 percent of covered payroll or approximately $40.3 million for the fiscal year ended June 30, 2016 and 9.6 percent of covered payroll or approximately $34.5 million for the fiscal year ended June 30, 2015. The employee aggregate contribution to the above three vendors was equal to 8.0 percent of covered payroll or approximately $30.3 million for the fiscal year ended June 30, 2016 and $28.8 million for the fiscal year ended June 30, 2015.

The Federal retirement system covers a very limited number of employees at CSU Extension. The System’s contribution to this plan was approximately $97 thousand for fiscal year ended June 30, 2016 and $135 thousand for fiscal year ended June 30, 2015.

(d) Student Employee Retirement Program Eligible student employees contribute 7.5 percent of covered payroll to the student employee retirement program (SERP). The SERP is funded entirely through employee contributions with no employer match. The SERP is a mandatory plan for all student employees who are enrolled at CSU but are not classified as a half-time student or greater. The SERP was established pursuant to state statute (24-54.6-101 through 24-54.6-106 CRS) as a mandatory nonqualified plan under 403(b) of the IRC in lieu of mandatory old age, survivors, and disability insurance (OASDI) coverage. The student retirement plan is a defined contribution plan administered by the individual agencies that make up the System, as applicable. All contributions are vested immediately and are participant-directed within the 83 123 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

funds available through the sole investment company, TIAA-CREF. The contribution by student employees for the fiscal years ended June 30, 2016 and 2015 was approximately $1.3 million and $1.4 million, respectively.

(e) Health Insurance Programs The System’s contribution to the various third-party health insurance programs was approximately $19.2 million and $17.7 million for the fiscal years ended June 30, 2016 and 2015, respectively.

(18) Risk Financing and Insurance-Related Activities CSU manages a combination of self-insured and fully-insured property and casualty insurance programs to best protect the University’s assets. At CSU, separate accounts currently make up the self-insured program: workers’ compensation, liability, auto comprehensive/collision and property. CSU contracts various day- to-day operations of the self-funded benefit plan, including claims processing, to third-party administrators. CSU carries excess insurance for liability and workers’ compensation claims over $500 thousand per occurrence, including claims arising from employment practices. CSU’s excess liability limits for this insurance are $25.0 million per occurrence. CSU self-insures for property insurance claims less than $100 thousand per occurrence with a $1 thousand deductible per occurrence paid by the university department incurring the loss. CSU purchases property insurance with limits of $1.0 billion. In addition to this, CSU carries auto insurance for out-of-state vehicles and workers’ compensation for out-of-state employees, student intern professional liability, professional liability insurance (Architects & Engineers), crime insurance, foreign liability insurance, Canadian Liability, Cyber Liability, Aviation Liability, Unmanned Aerial Vehicles Liability, TULIP (Tenant User Liability Insurance Program), and self-insures for in-state auto insurance. As of March 1, 2016 CSU purchased liability, professional liability and pollution liability for all CEMML operations, including their prescribed burn operations. This insurance included a primary layer of $2 million aggregate, an umbrella layer of $5 million, and an excess layer of $5 million.

In addition to the above, CSU is self-insured for various other risks of loss. At CSU, separate accounts currently make up the self-insured program: healthcare, dental, short-term disability, and an unallocated reserve fund. CSU contracts various day-to-day operations of the self-funded benefit plans, including claims processing, to third-party administrators. Program funding is derived from a combination of premiums paid by benefit plan participants and various institutional match amounts. The self-funded benefit plans are fully self-insured except for healthcare coverage, which is reinsured for claims expenses above $275 thousand per covered employee per year. The Unallocated Reserve Account is a general contingency reserve fund for miscellaneous and unanticipated expenses of the other health related accounts.

The amount of claims and administrative costs for the self-funded plans for fiscal years ended June 30, 2016 and 2015 did not exceed plan revenues and reserves. Eligible faculty and nonclassified staff employees may select from various benefit plans and may elect to make premium contributions in the form of a pre-tax salary reduction.

The above health related programs had estimated claim liabilities of $21.1 million and $23.0 million at June 30, 2016 and 2015, respectively, which include incurred but not reported claims (IBNR) along with known claims at year end. These estimates are made through a combination of analyzing payments in early months of the subsequent year, historical trends, industry guidelines, and underwriting advice from our third-party administrator and benefits consultant.

In addition to these claims, workers’ compensation had estimated claim liabilities of $5.3 million and $5.4 million at June 30, 2016 and 2015, respectively. Liability self-insurance had estimated claim liabilities of $337 thousand and $302 thousand at June 30, 2016 and 2015, respectively. These estimates are based on 84 124 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

current data and actuarial reports. Property self-insurance had no estimated claim liabilities at June 30, 2016 and 2015.

The changes in the balance of claim liabilities were as follows: 2016 2015 Claim liabilities, beginning of year $ 28,660 33,555 Incurred claims (including IBNR) 46,728 40,237 Claim payments (48,628) (45,132) Claim liabilities, end of year $ 26,760 28,660

Claims liabilities are recorded in accrued liabilities, deposits held for others, and other noncurrent liabilities on the Statements of Net Position.

(19) Post-Employment Healthcare and Life Insurance Benefits (a) PERA Post-Employment Healthcare Plan Plan Description

The System contributes to the Health Care Trust Fund (HCTF), a cost-sharing multiple-employer healthcare trust administered by PERA. The HCTF benefit provides a health care premium subsidy and health care programs (known as PERACare) to PERA participating benefit recipients and their eligible beneficiaries. Title 24, Article 51, Part 12 of the C.R.S., as amended, establishes the HCTF and sets forth a framework that grants authority to the PERA Board to contract, self-insure and authorize disbursements necessary in order to carry out the purposes of the PERACare program, including the administration of health care subsidies. PERA issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information for the HCTF. That report can be obtained at www.copera.org/investments/pera-financial-reports.

Funding Policy

The System is required to contribute at a rate of 1.02 percent of PERA-includable salary for all PERA members as set by statute. No member contributions are required. The contribution requirements for the System are established under Title 24, Article 51, Part 4 of the C.R.S., as amended. The apportionment of the contributions to the HCTF is established under Title 24, Article 51, Section 208(1)(f) of the C.R.S., as amended. For the fiscal years ending June 30, 2016, 2015, and 2014, the System contributions to the HCTF were $1.5 million for all three years, equal to their required contributions for each year.

(b) Other Post-Employment Benefits (OPEB) – CSU Plan Descriptions

CSU contributes to three single-employer defined benefit healthcare plans: CSU Retiree Medical Premium Refund Plan for DCP Participants (DCP Refund), CSU Retiree Medical Premium Subsidy for PERA Participants (PERA Subsidy), and the CSU Retiree Umbrella Rx Plan for PERA Participants (Rx Subsidy). Each plan provides premium support or medical benefits to eligible retired CSU faculty and nonclassified employees with the Rx Subsidy extending benefit coverage to spouses and dependents that elect to participate. CSU also has a self-insured Long-Term Disability Plan (LTD). This plan provides income replacement after the 91st consecutive calendar day of total disability.

85 125 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Benefit provisions for each of the plans are established and amended through the Board of Governors of the Colorado State University System. CSU does not issue separate financial reports for the plans.

Membership of each plan consisted of the following as of June 30, 2016: DCP PERA RX LTD Income RefundSubsidySubsidyReplacement Active plan members 4,472 193 193 5,064 Former employees receiving income replacement - - - 26 Retirees receiving a subsidy 408 508 353 - Retirees eligible for a subsidy but not yet receiving one 17 157 157 - Total 4,897 858 703 5,090

CSU Retiree Medical Premium Refund Plan for DCP Participants

Employees who retire from the University at age 55 with 20 or more years of service or age 60 with 5 or more years of service are eligible for this benefit. For eligible retirees with 20 or more years of service, CSU pays a healthcare premium refund of the lesser of $200 per month or the actual cost of the retiree’s (not including dependents) health insurance. Benefits are prorated for service between 5 and 20 years. DCP participants include employees who were hired after April 1, 1993, who have no previous participation in PERA or have less than one year of participation in PERA or employees with at least one year of previous participation in PERA who elect to enroll in the DCP at the time of appointment. DCP participants also include certain employees hired prior to April 19, 1993 who made a one-time, irrevocable election at the time of implementation to terminate participation in PERA and join the DCP. The DCP Refund is administered by HealthSmart.

On an annual basis, funds equal to the annual required contribution (ARC), provided by the actuarial valuation, are transferred to the irrevocable trust. The funds available to cover the plan benefits were $40.8 million and $37.0 million for fiscal years ended June 30, 2016 and 2015, respectively. Funds provided for the benefit of the program included $4.5 million and $1.4 million for fiscal years ended June 30, 2016 and 2015, respectively, plus the corresponding interest income less plan costs. Total amounts paid to retirees for this healthcare subsidy were $775 thousand and $708 thousand for fiscal years ended June 30, 2016 and 2015, respectively. As of June 30, 2016 and 2015, 408 and 365 former employees, respectively, were qualified to receive such benefits.

CSU Retiree Medical Premium Subsidy for PERA Participants

University faculty and nonclassified staff participating in the PERA retirement plan who meet CSU’s age and years of service requirements and retire from the University with at least 10 years of University service, are eligible to receive a subsidy. Future enrollments are further restricted to those academic faculty and administrative professional staff participating in the PERA retirement plan and holding benefit eligible appointments on June 30, 2009. The amount of the subsidy for eligible retirees is their out-of-pocket expenses for retiree only coverage or an amount equal to the premium for single coverage under the lowest cost plan available to active faculty and nonclassified staff, whichever is less. The plan is administered by PERA which bills CSU on a monthly basis for the applicable premiums.

On an annual basis, funds equal to the ARC, provided by the actuarial valuation, are transferred to the irrevocable trust. The funds available to cover the plan benefits were $22.3 million and $21.6 million for fiscal years ended June 30, 2016 and 2015, respectively. The funds contributed to the plan for fiscal 86 126 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands) years ended June 30, 2016 and 2015 were $2.0 million and $3.0 million, respectively. The average number of beneficiaries of this subsidy was 508 and 505 for fiscal years ended June 30, 2016 and 2015, respectively. The benefits paid by the University were $1.3 million and $1.2 million for fiscal years ended June 30, 2016 and 2015, respectively.

CSU Retiree Umbrella Rx Plan for PERA Participants

The University provides reimbursement for the prescription copayments made by eligible faculty and nonclassified staff who retire from the University under the PERA retirement plan with at least 10 years of service. Retirees have to be age 65 or older or eligible for Medicare and enrolled in the PERA Medicare supplement plan to be eligible for this plan. Future enrollments are further restricted to those academic faculty and administrative professional staff participating in the PERA retirement plan and holding benefit eligible appointments on June 30, 2009. PERA provides a prescription insurance program for retirees enrolled in any medical insurance plan. The PERACare Prescription insurance program covers the cost of prescriptions after the member pays a copay which varies depending on whether the prescription is purchased through a local retail pharmacy or through a mail-order pharmacy, and whether the drug is generic or a brand-name drug. The Umbrella Rx plan reimburses the retiree for the complete cost of the prescription copay less a $10 copay for retail and a $20 copay for mail- order drugs. Spouses and dependents of retirees enrolled in the plan can be covered with the payment of $44 per month for those enrolled in Medicare or $99 per month for those not enrolled in Medicare. The plan is administered by Employee Benefit Management Services, Inc.

On an annual basis, funds equal to the ARC, provided by the actuarial valuation, are transferred to the irrevocable trust. The funds contributed to the plan for fiscal years ended June 30, 2016 and 2015 were $150 thousand and $204 thousand, respectively. These funds, along with the amounts paid in by participants of $30 thousand in fiscal year 2016, and the related interest income, have resulted in total funds available of $594 thousand and $581 thousand as of fiscal years ended June 30, 2016 and 2015, respectively, for this plan. Plan members were reimbursed $68 thousand and $72 thousand for prescription claims for the fiscal years ended June 30, 2016 and 2015, respectively.

CSU Long-Term Disability Plan

The University contributes to the LTD income replacement plan. This plan provides a monthly income replacement benefit which begins on the 91st consecutive calendar day of total disability. The LTD coverage provides the eligible PERA or Federal Retirement Plan participants with up to 60 percent of pre-disability covered monthly salary, not to exceed $6,000 per month, or up to 69 percent of covered monthly salary, not to exceed $6,900 per month for DCP participants. The income replacement benefit will increase three percent annually. The plan is offset by any other benefits or earnings received or eligible to be received from other sources such as PERA, Federal Retirement, Social Security, or Workers’ Compensation. The minimum income replacement benefit is $50 per month. Employees are eligible to receive benefits until one of the following circumstances occur: recovery, death, age 65 if disabled when less than 60, four and three-fourths years if disabled between the ages of 60 and 65, or age 70 if disabled between the ages of 65 and 68 ¾. This plan is administered by Assurant Insurance Company.

CSU funds the LTD plan by providing an allowance to each employee and then deducting the cost of the premium. The premiums collected are transferred to the irrevocable trust as an employee contribution. The funds contributed to the plan for fiscal years ended June 30, 2016 and 2015 were $1.4 million and $3.2 million, respectively. The funds contributed to the plan in fiscal year ended June 30, 2015 included a one-time clean up transfer from the fringe pool of $1.8 million. These funds, which

87 127 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

include those previously set aside and the related interest income, have resulted in total funds available of $7.9 million and $7.4 million as of fiscal years ended June 30, 2016 and 2015, respectively. Plan members received $922 thousand and $949 thousand in benefits for fiscal years ended June 30, 2016 and 2015, respectively.

Funding Policy, Status, and Progress

CSU’s annual OPEB cost for each plan was calculated based on the ARC, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial accrued liabilities over a period not to exceed 30 years. Fiscal year 2008 was the year of transition and CSU elected to prospectively implement GASB Statement 45 resulting in the net OPEB obligation at the beginning of the year being set at $0. For each of the plans, CSU sets aside funds in an internal service fund to cover future benefits in varying amounts. On June 27, 2014, the funds held in the internal service fund were transferred to an irrevocable trust, and GASB Statement 43 was implemented, leaving a net OPEB obligation for each plan. CSU funds the plans using the ARC amount, an amount actuarially determined in accordance with the parameters of GASB Statement 43. CSU’s current funding status and remaining net OPEB obligation for each plan for fiscal year ended June 30, 2016 are as follows:

DCP PERA Rx LTD Income Refund Subsidy Subsidy Replacement

Actuarial accrued liability (a) $ 39,843 45,646 2,286 12,071 Actuarial value of plan assets (b) 40,739 22,275 594 7,926 (Overfunded)/unfunded actuarial accrued liability (a) - (b) $ (896) 23,371 1,692 4,145

Funded ratio (b)/(a) 102.2% 48.8% 26.0% 65.7% Covered payroll (c) $ 325,055 N/A N/A N/A (Overfunded)/unfunded actuarial accrued liability as a percentage of covered payroll [(a) - (b)]/(c) -0.3% N/A N/A N/A

Contribution rates: CSU (through June 27, 2014) Pay-as-you-go Pay-as-you-go Pay-as-you-go Pay-as-you-go CSU (subsequent to June 27, 2014) Based on ARC Based on ARC Based on ARC Basedbased on on ARC Participants N/A N/A $0-$99 / month N/A based on eligibility

Net OPEB obligation/(asset) $ (738) (884) 135 (3,945)

The financial statements for the irrevocable trust, included in the supplementary information, have been prepared using the accrual basis of accounting. Plan members’ contributions will be recognized in the period in which the contributions are due. Employee contributions to each plan will be recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds 88 128 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

are recognized when due and payable in accordance with the terms of each plan. Investments are reported at fair market value and administrative costs are direct expenditures of the plan. The trust does not issue separate financial statements other than those included in the supplementary information.

The schedules of funding progress, presented as required supplementary information following the notes to the financial statements, present multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status of the plan and the ARC of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. OPEB assets and liabilities as of June 30, 2016, are recorded in other noncurrent assets and other noncurrent liabilities.

Actuarial Methods and Assumptions

Projections of benefits are based on the substantive plan and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs, if applicable, between CSU and the plan participants to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows:

DCP PERA Rx LTD Income Refund Subsidy Subsidy Replacement

Valuation date 1/1/2016 1/1/2016 1/1/2016 1/1/2016

Actuarial cost method Entry Age Projected Unit Projected Unit Entry Age Normal Credit Credit Normal

Amortization method 1 Year Open, 30 Years Closed, 30 Years Closed, 30 Years Open, Level Percent Level Level Level Percent of Pay Dollar Dollar of Pay

Remaining amortization period 1 Year 22 Years 22 Years 30 Years Asset valuation method Market Value Market Value Market Value Market Value Actuarial assumptions: Investment rate of return 4.00% 4.00% 4.00% 4.00% Inflation rate 3.00% 3.00% 3.00% 3.00% Salary increase rate N/A N/A N/A 4.00% Healthcare cost N/A 7% initial, N/A N/A Trend rate 5% ultimate (c) Other Post-Employment Benefits (OPEB) CSU-Pueblo – Retired faculty and exempt administrative staff are eligible to participate in the Colorado Higher Education Insurance Benefits Alliance Trust (CHEIBA). CHEIBA is a cost-sharing multiple- employer insurance purchasing pool, which allows for post-employment health coverage until the

89 129 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

retiree is eligible for Medicare. The retiree is responsible for paying 100 percent of the health insurance cost. As of June 30, 2016, there were 83 participants in the plan, of which four were CSU-Pueblo retirees.

CHEIBA financial statements are prepared under accounting principles generally accepted in the United States of America using the accrual basis of accounting following Governmental Accounting Standards for a business type activity. The financial statements can be obtained by contacting: Human Resources, Colorado State University-Pueblo, 2200 Bonforte Blvd., Pueblo, Colorado 81001.

Contributions are recognized in the period due. Benefits and refunds are recognized and paid when due according to the participating plans. The fair value of the Trust’s investments is based on quoted market prices from national securities exchanges.

(d) Life Insurance Program During fiscal years ended June 30, 2016 and 2015, PERA provided its members with access to a group decreasing term life insurance plan offered by Unum Provident. Active members may join the Unum Provident Plan and continue coverage into retirement. PERA retirees are not eligible to enroll in the insurance program. Premiums are collected by monthly payroll deductions or other means. In addition, PERA maintained coverage for members under closed group plans underwritten by Anthem Life, Prudential, and New York Life.

(20) Compensated Absences Liability System employees may accrue annual and sick leave based on the length of service and subject to certain limitations regarding the amount that will be paid upon termination. The estimated liability of compensated absences for which employees are vested as of June 30, 2016 and 2015 was $55.4 million and $52.0 million, respectively.

Overall, expenses increased for the fiscal year ended June 30, 2016 by $3.4 million and increased for the fiscal year ended June 30, 2015 by $3.1 million, for the estimated compensated absences liabilities.

(21) Direct Student Financial Aid Reporting During the fiscal years ended June 30, 2016 and 2015, CSU, CSU-Global and CSU-Pueblo participated in the federal government’s Direct Loan Program. This program provides loans from the federal government to qualifying students and their families for educational purposes. While CSU, CSU-Global and CSU- Pueblo help students obtain these loans, the University is not a party to the loans and is not responsible for collection of monies owed or for defaults by borrowers.

The gross amounts of Direct Loans disbursed during the fiscal years ended June 30, 2016 and 2015 were $260.1 million and $239.4 million, respectively.

90 130 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(22) Scholarship Allowance

Tuition, fees, and auxiliary revenues and the related scholarship allowances for the year ended June 30, 2016 were as follows: June 30 2016 Tuition and Auxiliary Fees Revenues Total Gross revenue $ 624,225 167,874 792,099 Scholarship allowances: Federal 28,440 885 29,325 State 16,285 774 17,059 Private 328 147 475 Institutional 79,088 2,535 81,623 Total allowances 124,141 4,341 128,482 Net revenue $ 500,084 163,533 663,617

Tuition, fees, and auxiliary revenues and the related scholarship allowances for the year ended June 30, 2015 were as follows: June 30 2015 Tuition and Auxiliary Fees Revenues Total Gross revenue $ 574,736 158,579 733,315 Scholarship allowances: Federal 29,908 893 30,801 State 11,308 866 12,174 Private 313 179 492 Institutional 72,903 2,776 75,679 Total allowances 114,432 4,714 119,146 Net revenue $ 460,304 153,865 614,169

(23) System Foundations and Endowments As discussed in Note 1(c), the CSU Foundation, CSU-Pueblo Foundation, and the CSU System Foundation have been incorporated into the System’s financial reporting entity as a result of adopting GASB Statement No. 61. The Colorado State University Research Foundation (CSURF) did not meet the requirements of GASB Statement No. 61 to be incorporated into the System’s financial reporting entity.

(a) Colorado State University Research Foundation CSURF is a private, nonprofit Colorado corporation established in 1941 to aid and assist the institutions governed by the Board of the System in their research and educational efforts. CSURF officers are appointed annually by the Board of Directors. The Board of Directors consists of five voting members and two nonvoting members. No person who is an employee of CSU or CSU-Pueblo is eligible to serve as an officer of CSURF or as a voting member of the Board.

91 131 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Colorado State University Ventures (CSUV) is a wholly owned subsidiary of Colorado State University Research Foundation. CSUV is used to assist in the promotion, development, improvement, and expansion of the facilities and programs of the Colorado State University System (System). The sole voting member of the nonprofit corporation is CSURF.

CSURF is a member in a Joint Venture, INTO-CSU, LLC. The purpose of the Joint Venture is to create an avenue for international students to attend CSU in a number of undergraduate and graduate pathways with multiple programs. INTO-CSU, LLC helps students integrate into classes as well as housing on campus. CSURF’s primary role is to financially support the joint venture.

The major sources of CSURF revenues are royalties, rents, management fees, licensing fees, and administration fees. The support provided by CSURF to the universities includes patent and licensing management, equipment leasing, municipal lease administration, debt financing through mortgage debt service, and land acquisition, development, and management. During the fiscal years ended June 30, 2016 and 2015, royalty revenues equaled $2.4 million and $4.8 million, respectively, and expenses were $1.8 million and $2.7 million, respectively. Also during the fiscal years ended June 30, 2016 and 2015, rental revenues equaled $6.3 million and $6.4 million, respectively, and related expenses were $5.4 million and $4.6 million, respectively.

At June 30, 2016, CSURF’s debt to provide buildings for use by the universities was $52.0 million.

At June 30, 2016, the assets of CSURF consisted of:

Cash and current assets $ 7,597 Property and equipment 52,472 Other assets 16,765 Total assets $ 76,834

At June 30, 2015, CSURF’s debt to provide buildings for use by the universities was $53.5 million.

At June 30, 2015, the assets of CSURF consisted of:

Cash and current assets $ 5,943 * Property and equipment 51,957 * Other assets 20,702 * Total assets $ 78,602 * *Certain reclassifications of amounts previously reported were made to the consolidated financial statements of CSURF to maintain consistency between periods presented. The reclassifications had no impact on previously reported net assets and primarily consisted of combining immaterial amounts into "other" catagories. Audited financial statements of CSURF are available at 410 University Services Center, P.O. Box 483, Fort Collins, CO 80522.

(b) CSU-Pueblo Board-Designated Funds CSU-Pueblo manages two board-designated funds. These funds’ assets and activity are reported as part of the System. Both funds retain 20 percent of earnings each year to build the corpus of the fund and transfer 80 percent of the annual earnings to CSU-Pueblo as designated by the Board. The first board- designated fund was established in 1994 from the proceeds of land sales in the Walking Stick 92 132 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

Development immediately west of the campus. The sale of excess land adjacent to the university campus provides resources that support the academic mission of CSU-Pueblo. To date, CSU-Pueblo has sold 16 parcels of land with the proceeds from the sales being placed in a board-designated fund. The Walking Stick Fund assets consisted of cash and land. The cash held by the Walking Stick Fund was $5.3 million for both fiscal years ended June 30, 2016 and 2015.

On June 30, 2000, CSU-Pueblo sold the KTSC-TV television license and certain related assets. The proceeds of the sale have been placed in a board-designated fund to support the maintenance of the Buell Communication Center building, telecommunications equipment associated with the Mass Communications program of CSU-Pueblo, and scholarships. The cash held by the KTSC Fund was $2.6 million for both fiscal years ended June 30, 2016 and 2015.

(c) INTO CSU, LLC INTO CSU, LLC is a limited liability company jointly owned by CSURF and INTO USA, LLC. CSURF and INTO USA, LLC each own 50 percent of the common units. INTO CSU, LLC has entered into a service agreement with Colorado State University and INTO University Partnerships Limited (IUP) whereby INTO CSU, LLC will manage an international student center, located on campus and, in connection with the services of IUP, be the exclusive provider of marketing and student recruitment services for the INTO CSU programs.

As part of the Service Agreement, CSURF agreed to loan the joint venture up to $1.5 million. The promissory note matures February 2027 with monthly interest payments of five percent due beginning March 2017. In connection with the agreement for CSURF to loan funds to INTO CSU, LLC, the University has agreed to reimburse CSURF for net funds loaned to the joint venture. As of the end of the year, the University has booked a receivable for $953 thousand due from CSURF relating to amounts that have been loaned to the joint venture.

(d) CSURF de Mexico, Association Civil

Todos Santos Mexico will further aid CSU in its mission of teaching, research, and outreach. Education abroad opportunities for CSU students will be available in wildlife ecology and conservation, agriculture, hospitality, nutrition, ecology, human development and family studies, the arts and more.

CSURF formed a subsidiary in Mexico, CSURF de Mexico, Association Civil (CSURF AC) in which to hold the development of housing, dining and research facilities in Todos Santos, Mexico as a CSU satellite campus. The ownership of the real property in Mexico is separate from CSURF AC and is held by a Mexican Trust. The terms of the Trust agreement, should the Trust be terminated, requires transfer of the property to the development partner or sale of the property and distribution of the proceeds.

CSURF AC entered into certain agreements with a development partner (MIRA) whereby CSURF AC borrowed funds from MIRA under terms of note obligations for the development of the property. As of June 30, 2015, CSURF AC had drawn $3.0 million under these debt obligations.

The land for the campus and research farm was to be transferred to the Trust by MIRA in various phases upon completion. During the year ended June 30, 2016, development of the campus was substantially complete and upon transfer of the property, MIRA forgave debt totaling $3.1 million.

93 133 COLORADO STATE UNIVERSITY SYSTEM Notes to Basic Financial Statements Years Ended June 30, 2016 and 2015 (Amounts expressed in thousands)

(24) State Support In fiscal year 2006 state support for higher education changed with the implementation of the College Opportunity Fund. As a result of this legislation, which was adopted in S.B. 04-189 passed in the 2004 state legislative session, the State no longer provides a direct state general fund appropriation to the System. Instead, state support is provided to the System in the form of fee for service contracts with the State for the delivery of special programs, graduate programs, and high cost/high demand programs. In fiscal years ended June 30, 2016 and 2015, the System received $91.7 million and $78.9 million, respectively, in state fee for service contract revenue.

State support was also provided to the System in the form of student tuition stipends provided to students by the state College Opportunity Fund. In fiscal years ended June 30, 2016 and 2015, stipends were provided to students attending classes at Colorado State University and Colorado State University-Pueblo in the amount of $42.9 million and $43.0 million, respectively.

(25) Contingencies Contingencies include those in which the System is a defendant in several lawsuits including various claims related to activities or employees of the System. The System believes that final settlement of matters not covered by insurance will not materially or adversely affect its financial condition or operations.

Financial Awards from Federal and State Agencies

The System receives significant financial awards from federal and state agencies in the form of grants. Expenditures of funds under those programs require compliance with the grant agreements and are subject to audit. Any disallowed expenditures resulting from such audits become a liability of the System. In the opinion of management, such adjustments, if any, are not expected to materially affect the financial condition or operations of the System.

The National Science Foundation (NSF) is currently in the preliminary stages of auditing its funding of various programs at the University. The audit process has just commenced and, therefore, the Board cannot at the current time describe the nature, scope or outcome of such an audit by the NSF.

(26) Subsequent Events On December 7, 2016, the System sold $5.2 million Taxable Series 2016 A and $65.0 million Series 2016 B System Enterprise Revenue and Refunding Bonds. The 2016 A bonds will be used for a portion of the construction costs of a 130,000 square foot building for the Institute for Biological Translational Therapies and a 48 stall research horse barn. The 2016 B System Enterprise Revenue and Refunding Bonds will be used to refund a portion of the 2007 A, 2007 B, and 2008 A Series Revenue Refunding Bonds along with the partial construction of a 37,400 square foot Natural Resource Building to add classrooms and a student success center, a 41,000 square foot design center to add classrooms and a studio center, a 130,000 square foot building for the Institute for Biological Translational Therapies and a 48 stall research horse barn, a 61,000 square foot Chemistry Building to provide laboratory and hood space for intensive synthetic chemistry programs and an underpass at Shields and Elizabeth, all in Fort Collins. The Series B Bonds will also fund various energy performance projects at CSU-Pueblo. The proceeds will also be used to pay the cost of issuing the Bonds.

On November 15, 2016, CSU announced a $53.3 million gift from alumnus Walter Scott, Jr. In recognition of this gift, the engineering college will be officially named the Walter Scott, Jr. College of Engineering.

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REQUIRED SUPPLEMENTAL INFORMATION

95 135

COLORADO STATE UNIVERSITY SYSTEM Required Supplemental Information June 30, 2016 (Unaudited) (Amounts expressed in thousands)

Schedule of Proportionate Share of the Net Pension Liability

2016 2015 2014 Proportion of the net pension liability 5.5% 5.6% 5.6% Proportionate share of the net pension liability $ 578,718 524,663 500,698 Covered-employee payroll 154,327 152,106 146,046 Proportionate share of the net pension liability as a percentage of covered-employee payroll 375.0% 344.9% 342.8% Plan fiduciary net position as a percentage of the total pension liability 56.1% 59.8% 61.1%

Schedule of Contributions

2016 2015 2014 Contractually required contributions $ 27,295 25,498 23,760 Contributions in relation to the contractually required contribution (27,295) (25,498) (23,760) Contribution deficiency/(excess) $ - - - Covered-employee payroll $ 155,689 152,974 150,398 Contributions as a percentage of covered-employee payroll 17.5%16.7%15.8%

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COLORADO STATE UNIVERSITY SYSTEM Required Supplemental Information Other Post-Employment Benefits – Funding Progress June 30, 2016 (Unaudited) (Amounts expressed in thousands)

Schedules of Funding Progress

Actuarial Accrued UAAL as a Actuarial Liability Unfunded Percentage of Actuarial Value of (AAL)- AAL Funded Covered Covered Valuation Assets Entry Age (UAAL) Ratio PayrollPayroll Date(a)(b)(b-a) (a/b)(c) ((b-a)/c)

DCP Refund 1/1/201640,739$ 39,843 (896) 102.2%325,055$ -0.3% 1/1/201435,021 34,014 (1,007) 103.0%305,603 -0.3% 7/1/2012 - 31,063 31,0630.0%259,317 12.0%

PERA Subsidy 1/1/201622,275 45,646 23,37148.8% -0.0% 1/1/201418,368 50,077 31,70936.7% -0.0% 7/1/2012- 45,849 45,8490.0% -0.0%

Rx Subsidy 1/1/2016 594 2,286 1,692 26.0% -0.0% 1/1/2014 452 2,841 2,389 15.9% -0.0% 7/1/2012- 2,556 2,556 0.0% -0.0%

LTD Income Replacement 1/1/20167,926 12,071 4,145 65.7% -0.0% 1/1/20145,279 11,570 6,291 45.6% -0.0% 7/1/2012- 15,466 15,4660.0% -0.0%

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COLORADO STATE UNIVERSITY SYSTEM Required Supplemental Information Other Post-Employment Benefits – Funding Progress June 30, 2016 (Unaudited) (Amounts expressed in thousands)

Schedules of Employer Contributions

YearAnnual EndedRequiredPercentage June 30ContributionContributed

DCP Refund 2016 $4,509 100.0% 2015 1,368 100.0% 2014 35,809 103.3%

PERA Subsidy 2016 1,968 100.0% 2015 3,040 100.0% 2014 4,189 500.5%

Rx Subsidy 2016 120100.0% 2015 17799.8% 2014 207273.1%

LTD Income Replacement 2016 1,190 118.4% 2015 1,209 261.2% 2014 1,338 470.3%

98 138

SUPPLEMENTAL INFORMATION

139

COLORADO STATE UNIVERSITY OTHER POST-EMPLOYMENT BENEFITS TRUST Statements of Plan Net Assets as of June 30, 2016 (Unaudited) (Amounts expressed in thousands)

Other Post-Employment Benefits

DCP PERA RX LTD Income 2016 2015 Refund Subsidy Subsidy Replacement Total Total Additions Contributions Contributions from employer $ 4,508 1,968 121 - 6,597 6,399 Contributions from employees - - 30 1,410 1,440 1,374 Total contributions 4,508 1,968 151 1,410 8,037 7,773 Investment income Interest 82 48 1 17 148 72 82 48 1 17 148 72 Less investment expense 4 2 - 1 7 7 Net investment income 78 46 1 16 141 65 Total additions 4,586 2,014 152 1,426 8,178 7,838

Deductions Benefit payments 775 1,266 68 922 3,031 2,923 Administrative expenses 61 27 71 83 242 159 Total deductions 836 1,293 139 1,005 3,273 3,082

Changes in net assets 3,750 721 13 421 4,905 4,756

Net assets, beginning of year 36,989 21,554 581 7,506 66,630 61,874 Net assets, end of year $ 40,739 22,275 594 7,927 71,535 66,630

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Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards

Members of the Legislative Audit Committee:

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the business-type activities and the discretely presented component units of the Colorado State University System (a higher education institution of the State of Colorado) (the System) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the System’s basic financial statements, and have issued our report thereon dated December 9, 2016, which contained paragraphs emphasizing matters regarding the financial statements. The financial statements of the Colorado State University Foundation and Colorado State University – Pueblo Foundation were not audited in accordance with Government Auditing Standards.

Internal Control Over Financial Reporting

Management of the System is responsible for establishing and maintaining effective internal control over financial reporting (internal control). In planning and performing our audit, we considered the System’s internal control to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the System’s internal control. Accordingly, we do not express an opinion on the effectiveness of the System’s internal control.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses as defined above. However, material weaknesses may exist that have not been identified.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the System’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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Compliance and Other Matters

As part of obtaining reasonable assurance about whether the System’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted certain matters that we reported to the System’s management in a separate letter dated December 9, 2016.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the System’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Denver, Colorado December 9, 2016

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Independent Auditor’s Audit Committee Communication

Members of the Legislative Audit Committee:

As part of our audit of the financial statements of the Colorado State University System (the System) as of and for the year ended June 30, 2016, we wish to communicate the following to you.

Auditor’s Responsibility Under Auditing Standards Generally Accepted in the United States of America and the Standards Applicable to Financial Audits Contained in Government Auditing Standards Issued by the Comptroller General of the United States

An audit performed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States is designed to obtain reasonable, rather than absolute, assurance about the financial statements. In performing auditing procedures, we establish scopes of audit tests in relation to the financial statements taken as a whole. Our engagement does not include a detailed audit of every transaction. Our engagement letter more specifically describes our responsibilities.

These standards require communication of significant matters related to the financial statement audit that are relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. Such matters are communicated in the remainder of this letter or have previously been communicated during other phases of the audit. The standards do not require the auditor to design procedures for the purpose of identifying other matters to be communicated with those charged with governance.

An audit of the financial statements does not relieve management or those charged with governance of their responsibilities. Our engagement letter more specifically describes your responsibilities.

Qualitative Aspects of Significant Accounting Policies and Practices

Significant Accounting Policies

The System’s significant accounting policies are described in Note 3 of the audited financial statements.

Alternative Accounting Treatments

 The CSU Foundation values certain alternative investments as of March 31 for year-end purposes as information is provided only quarterly and not until after year-end close has occurred

Management Judgments and Accounting Estimates

Accounting estimates are an integral part of financial statement preparation by management, based on its judgments. The following areas involve significant areas of such estimates for which we are prepared to discuss management’s estimation process and our procedures for testing the reasonableness of those estimates:

 Allowance for uncollectible student loans

105105 145

 Allowance for doubtful accounts  Employment benefits, including the net pension liability measured according to Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment to GASB Statement No. 27  Other postemployment benefit liabilities  Scholarship allowance  Compensated absences  Useful lives of capital assets and related depreciation expense  Claim liabilities for self-insurance

Financial Statement Disclosures

The following areas involve particularly sensitive financial statement disclosures for which we are prepared to discuss the issues involved and related judgments made in formulating those disclosures:

 Noncurrent liabilities  Pension Plan

Audit Adjustments

During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management evaluates our proposals and records those adjustments which, in its judgment, are required to prevent the financial statements from being materially misstated. Some adjustments proposed were not recorded because their aggregate effect is not currently material; however, they involve areas in which adjustments in the future could be material, individually or in the aggregate.

Proposed Audit Adjustments Recorded:

Colorado State University  No matters are reportable

Colorado State University-Pueblo  No matters are reportable

Colorado State University-Global  No matters are reportable

CSU Foundation  No matters are reportable

CSU-Pueblo Foundation  No matters are reportable

CSU-System Foundation  No matters are reportable

Proposed Audit Adjustments Not Recorded:

Colorado State University  An entry to record the opportunity cost of capitalized interest

Colorado State University-Pueblo  An entry to record capitalized interest on tax-exempt debt 106 146

 An entry to reconcile accounts receivable  An entry to reclassify restricted cash

Colorado State University-Global  See the CSU-Global report issued under a separate cover

CSU Foundation  No matters are reportable

CSU-Pueblo Foundation  No matters are reportable

CSU-System Foundation  No matters are reportable

Auditor’s Judgments About the Quality of the System’s Accounting Principles

During the course of the audit, we made the following observations regarding the System’s application of accounting principles:

 No matters are reportable

Significant Issues Discussed with Management

During the Audit Process

During the audit process, the following issues were discussed or were the subject of correspondence with management:

 Employment benefits, including the net pension liability as measured according to Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment to GASB Statement No. 27

Other Material Written Communications

Listed below are other material written communications between management and us related to the audit:

 Management representation letter  Management letter dated December 9, 2016 communicating other deficiencies in internal control that are not considered material weaknesses or significant deficiencies

This letter is intended solely for the information and use of the Legislative Audit Committee, the Office of the State Auditor, the Colorado State University Board of Governors, the Colorado State University Board of Governors’ Audit Committee and the Colorado State University System’s management and is not intended to be and should not be used by anyone other than these specified parties. However, upon release by the Legislative Audit Committee, this report is a public document.

December 9, 2016

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Independent Auditor’s Report on Bond Compliance

Members of the Legislative Audit Committee:

We have audited the financial statements of the business-type activities and the discretely presented component units of the Colorado State University System, State of Colorado (the System), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise its basic financial statements and have issued our report thereon dated December 9, 2016, which contained paragraphs emphasizing matters regarding the financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The financial statements of the Colorado State University Foundation and the Colorado State University – Pueblo Foundation, the discretely presented component units, were not audited in accordance with Government Auditing Standards.

In connection with our audit, nothing came to our attention that caused us to believe that the System failed to comply with the terms, covenants, provisions, or conditions of the respective Authorizing Bond Resolutions and the Official Statements (collectively, bond resolutions) insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the System’s noncompliance with the above-referenced terms, covenants, provision, or conditions of the bond resolutions, insofar as they relate to accounting matters.

In accordance with the respective bond resolutions discussed above, revenue bonds’ earnings requirement schedules (the Schedules) are shown on page 111. We have not audited the Schedules and express no opinion on them.

This report is intended solely for the information and use of the Legislative Audit Committee, the Office of the State Auditor, the Colorado University System Board of Governors, the Colorado State University Board of Governors’ Audit Committee and the Colorado State University System’s management, and is not intended to be and should not be used by anyone other than these specified parties. However, upon release by the Legislative Audit Committee, this report is a public document.

Denver, Colorado December 9, 2016

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110 150 COLORADO STATE UNIVERSITY SYSTEM Revenue Bonds’ Earning Requirement Schedules Year Ended June 30, 2016 (Unaudited) (Amounts expressed in thousands)

Colorado State University (CSU) System Enterprise Revenue and Refunding Bonds The following information is presented in accordance with the bond resolutions of System Enterprise Revenue and Refunding Bonds: Series 2007 A, B; 2008 A; 2009 A; 2010 A, B, C; 2012 A; 2012 B, C; 2013 A, B; 2013 C, D; 2013 E; 2015 A, B, C, D; and 2015 E1, E2, F. Below is the calculation of the earnings requirement, which includes the earnings of 10 percent tuition, CSU facilities fees (80 percent of first $10 credit hour fee and 100 percent of additional $5 per credit hour fee), CSU-Pueblo facilities fees (100 percent), CSU Research Building Revolving Fund, and Auxiliary pledged revenues.

For the purposes of determining compliance with the bond resolutions, System Enterprise Revenue earnings for the fiscal year ended June 30, 2016 are computed as follows:

Research Tuition and Building Facilities Revolving Fee Fund Auxiliary Total Pledged revenues $ 43,826 51,008 121,680 216,514 Pledged fee revenues 16,019 - 25,272 41,291 Pledged investment income 51 48 1,001 1,100 59,896 51,056 147,953 258,905 Operating expenses 35 60 105,851 105,946

Pledged revenue, net of operating expenses $ 59,861 50,996 42,102 152,959

Net income required under the bond resolution: Current year principal and interest payments $ 64,411 Minimum earnings ratio required by bond resolution 100%

Net income requried under the bond resolution $64,411

The net income to meet the earnings requirement under the bond resolution shown above exceeds the required amount.

See accompanying independent auditors’ report on Bond Compliance.

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State-Funded Student Financial Assistance Programs Financial Audit Report Section

113 153 COLORADO STATE UNIVERSITY SYSTEM State-Funded Student Financial Assistance Programs Year Ended June 30, 2016 (Amounts expressed in thousands)

Introduction Colorado State University System (the System) comprises three state-supported institutions of higher education:

 Colorado State University (CSU), located in Fort Collins  Colorado State University – Pueblo (CSU-Pueblo), located in Pueblo  Colorado State University – Global Campus (CSU-Global)

The financial assistance and compliance audit of the state-funded student financial assistance programs at the System for the fiscal year ended June 30, 2016 was directed toward objectives and criteria set forth in the Colorado State University System’s Financial Aid Policy. The state-funded student financial assistance programs were examined simultaneously with the federal aid programs for the year ended June 30, 2016. State-Funded Student Financial Assistance Programs

The various state-funded student assistance programs at the System include the Colorado Student Grant Program (which includes the Colorado Graduate Grant and the Colorado Need-based Grant programs), Colorado Merit Program, and the Colorado Work-Study program.

Instutional participation in the various state-funded student financial assistance programs is illustrated as follows:

State-Funded Student Assistance Program CSU CSU-Pueblo CSU-Global Colorado Student Grant Program X X Colorado Work-Study Program X X Colorado Merit Program X X

The state-funded student financial assistance awards made by the institutions during fiscal year 2016 were as follows:

State-Funded Student Financial Assistance Program

Colorado State University $ 13,183 Colorado State University - Pueblo 4,472 Colorado State University - Global Campus -

The Director of Financial Aid of each institution is responsible for administration of these programs. This responsibility includes application processing, eligibility determination, and financial aid packaging, as well as ensuring compliance with regulations governing the participation of the institution in federal and state financial aid programs. The responsibilities of each institution’s controller for general ledger accounting, payments, and collections are also of assistance to financial aid directors in the financial management of the programs.

(continued)

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COLORADO STATE UNIVERSITY SYSTEM State-Funded Student Financial Assistance Programs Year Ended June 30, 2016 (Amounts expressed in thousands)

During the fiscal year ended June 30, 2016, the System obtained authorizations to award federal student financial aid funds of approximately $39.4 million in the Pell Grant Program, $983 thousand in the Supplemental Educational Opportunity Grant Program, $1.4 million in the College Work-Study Program, and $4.3 million in the Perkins Student Loan Program. In addition to these programs, the System also received funding through the Direct Loan Program. Authorizations were not applicable to these programs given Direct Loans are available to any eligible student.

During the fiscal year ended June 30, 2016, the System obtained authorizations to award Colorado student financial aid funds of approximately $14.1 million in the Colorado Student Grant Program, $2.9 million in the Colorado Work-Study Program, and $666 thousand in the Colorado Merit Program.

The related statement of allocations, expenditures, and reversions of state-funded student financial assistance programs is presented on page 119 of this report as well as the individual universities’ schedules of allocations, expenditures, and reversions of state-funded student financial assistance programs on pages 122 and 123.

115 155 COLORADO STATE UNIVERSITY SYSTEM State-Funded Student Financial Assistance Programs Year Ended June 30, 2016

Report Summary

Purpose and Scope of Audit

Our audit of the state-funded student assistance programs was performed in accordance with the financial compliance elements of “Standards for Audits of Governmental Organizations, Programs, Activities, and Functions” issued by the Comptroller General of the United States, as revised through 2004. The purpose of the audit was to formulate an opinion on the statement of student aid program allocations, expenditures, and reversions for the fiscal year ended June 30, 2016 and to determine if these programs were administered in accordance with applicable laws, regulations, terms of agreements, and Governing Board directives which were set forth in the handbook.

Our examination included:

• Expressing an opinion on the statement of allocations, expenditures and reversions of the state- funded student financial assistance programs. • Evaluation of the policies, procedures and practices used to administer these programs. • Determination of compliance with applicable sections of Colorado Revised Statutes 23-3.3 et.seq and approved Governing Board Policies.

Summary of Current Year Comments

The audit covered the period July 1, 2015 through June 30, 2016, and fieldwork was performed during the period July 22, 2016 through September 30, 2016, at the Business and Student Financial Aid Offices.

The audit report for the year ended June 30, 2016 contains one finding and recommendation related to state-funded student financial assistance programs.

Summary of Progress in Implementing Prior Audit Recommendations

There were no matters noted in the audit report for the year ended June 30, 2014.

116 156

Independent Auditor’s Report on the Statement of Allocations, Expenditures and Reversions of the State-Funded Student Financial Assistance Programs

Members of the Legislative Audit Committee:

Report on the Financial Statements

We have audited the accompanying statement of allocations, expenditures, and reversions of the state- funded student financial assistance programs (the Statement) of Colorado State University System, State of Colorado (the System), for the year ended June 30, 2016, and the related notes to the Statement, in accordance with the requirements of 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado-Funded Student Aid, issued by the Colorado Department of Higher Education (CDHE).

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the Statement in accordance with accounting principles generally accepted in the United States of America and requirements of CDHE; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the Statement that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Statement is free from material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Statement. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the Statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the Statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

117 157

Opinion

In our opinion, the Statement referred to above presents fairly, in all material respects, the allocations, expenditures and reversions of the state-funded student financial assistance programs of the Colorado State University System, State of Colorado for the year ended June 30, 2016, pursuant to the 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado-Funded Student Aid issued by the Department of Higher Education, and in conformity with the provisions of the System’s policies.

Emphasis of Matter

As described in the notes to the statement of allocations, expenditures and reversions of the state-funded student financial assistance programs of Colorado State University System, State of Colorado (the Statement), the Statement was prepared in accordance with the format as set forth in the 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado-Funded Student Aid issued by the Colorado Department of Higher Education (CDHE), and in conformity with the System’s policies for the purpose of complying with the requirements of the state-funded student financial assistance programs. The Statement is a summary of cash activity of the state-funded student financial assistance programs with the exception of the Colorado Work-Study program and does not present certain transactions that would be included in the statement of the state-funded student assistance programs if it was presented on the accrual basis of accounting, as prescribed by accounting principles generally accepted in the United States of America. Accordingly, the accompanying statement is not intended to, and does not, present the financial position, changes in financial position or cash flows of the System in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Other Reporting Required by Government Auditing Standards

This report is intended solely for the information and use of the Legislative Audit Committee, the Office of the State Auditor, the Colorado State University Board of Governors, the Colorado State University Board of Governors’ Audit Committee, the Colorado State University System’s management, and the Department of Higher Education and is not intended to be and should not be used by anyone other than these specified parties. However, upon release by the Legislative Audit Committee, this report is a public document.

Denver, Colorado December 9, 2016

118 158

COLORADO STATE UNIVERSITY SYSTEM Statement of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs Year Ended June 30, 2016

Total State- Colorado Colorado Funded Student Graduate Colorado Colorado Student Grant Grant Work-Study Merit Assistance Allocations Original $ 12,316,204 1,403,299 2,957,807 662,469 17,339,779 Allocation adjustment 345,361 (3,266) (30,000) 3,266 315,361 Total 12,661,565 1,400,033 2,927,807 665,735 17,655,140

Expenditures 12,661,161 1,400,033 2,927,807 665,735 17,654,736

Reversions to State General Fund $ 404 - - - 404

See accompanying notes to the Statement of Allocations, Expenditures, and Reversions

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120 160 COLORADO STATE UNIVERSITY SYSTEM Notes to Statement of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs Year Ended June 30, 2016

Note 1: Summary of Significant Accounting Policies

The Colorado State University System’s (the System) accounting system is structured and administered in accordance with the accounting principles promulgated by the Governmental Accounting Standards Board.

The statement of allocations, expenditures and reversions of the state-funded student financial assistance programs (the Statement) has been prepared in accordance with the format as set forth in the 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado Funded Student Aid issued by the Department of Higher Education and in conformity with the System’s policies. The purpose of the Statement is to present, in summary form, the state-funded student financial assistance activities of the System’s three campuses for the fiscal year ended June 30, 2016.

All student aid is expended on a cash basis except for the College Work-Study Program (CWS). The CWS is on the accrual basis in that the expense is recognized when the services are performed. This basis differs from accounting principles generally accepted in the United States of America primarily because allocations are presented instead of revenue and because assets, liabilities and net assets are not included in the financial statement.

Note 2: Other – Required Statements, Comments and Recommendations

The System’s packaging priority for need-based financial aid applicants is required to give the highest priority to the neediest students. Students with the lowest expected family contribution and the earliest date of filing a completed application are given top priority for available funds. Priority is not given on the basis of new or continuing student status, but on the date the application is completed. The student catalog further outlines additional eligibility requirements set forth for specific federal and state assistance programs including U.S. citizenship, Colorado residency, and meeting satisfactory academic progress guidelines.

The System’s policies do not allow the transfer of funds between those programs.

Note 3: Contingencies

The student financial assistance program is subject to periodic reviews by the Colorado Commission on Higher Education. If disallowances should occur as a result of the program reviews, the System could be required to repay the disallowed amounts.

121 161

COLORADO STATE UNIVERSITY SYSTEM Schedule of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs Colorado State University Year Ended June 30, 2016 (Amounts expressed in thousands)

Total State- Colorado Funded Colorado Graduate Colorado Colorado Student Student Grant Grant Work-Study Merit Assistance Allocations Original $ 8,860,066 1,370,633 2,129,127 528,349 12,888,175 Allocation adjustment 324,396 - (30,000) - 294,396 Total 9,184,462 1,370,633 2,099,127 528,349 13,182,571

Expenditures 9,184,462 1,370,633 2,099,127 528,349 13,182,571

Reversions to State General Fund $ - - - - -

See accompanying notes to the Statement of Allocations, Expenditures, and Reversions

122 162

COLORADO STATE UNIVERSITY SYSTEM Schedule of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs Colorado State University - Pueblo Year Ended June 30, 2016 (Amounts expressed in thousands)

Total State- Colorado Colorado Funded Student Graduate Colorado Colorado Student Grant Grant Work-Study Merit Assistance Allocations Original $ 3,456,138 32,666 828,680 134,120 4,451,604 Allocation adjustment 20,965 (3,266) - 3,266 20,965 Total 3,477,103 29,400 828,680 137,386 4,472,569

Expenditures 3,476,699 29,400 828,680 137,386 4,472,165

Reversions to State General Fund $ 404 - - - 404

See accompanying notes to the Statement of Allocations, Expenditures, and Reversions

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124 164

Independent Auditor’s Report on Compliance and Internal Control Over Compliance with Requirements That Could Have a Direct and Material Effect on Each State-Funded Student Financial Assistance Program

Members of the Legislative Audit Committee:

Report on Compliance for Each State Funded Student Assistance Program

We have audited the compliance of Colorado State University System, State of Colorado’s (the System) with the types of compliance requirements described in the 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado-Funded Student Aid, issued by the Colorado Department of Higher Education (CDHE) that could have a direct and material effect on each of the System’s state-funded student financial assistance programs for the year ended June 30, 2016. The System’s state-funded student financial assistance programs are identified in the accompanying statement of allocations, expenditures and reversions. Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, terms of agreements and System policies applicable to each of its state-funded student financial assistance programs. Auditor’s Responsibility

Our responsibility is to express an opinion on the System’s compliance for each of the System’s state- funded student financial assistance programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado-Funded Student Aid, issued by the CDHE. Those standards and audit guide require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a state-funded student financial assistance program occurred. An audit includes examining, on a test basis, evidence about the System’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each state-funded student financial assistance program. However, our audit does not provide a legal determination of the System’s compliance with those requirements. Basis for Qualified Opinion on State-Funded Student Financial Assistance Program

As described in Recommendation #4 in the accompanying schedule of findings and questioned costs, the Colorado State University System did not comply with requirements regarding Eligibility and Colorado Work-Study Payroll Procedures for its State-Funded Student Financial Assistance Program. Compliance with such requirements is necessary, in our opinion, for the System to comply with requirements applicable to that program.

125 165

Qualified Opinion on State-Funded Student Financial Assistance Program

In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the System complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on State-Funded Student Financial Assistance Program for the year ended June 30, 2016. Report on Internal Control Over Compliance

Management of the System is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above and System policies applicable to state-funded student financial assistance programs. In planning and performing our audit of compliance, we considered the System’s internal control over compliance with the types of requirements that could have a direct and material effect on a state-funded student financial assistance program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the audit requirements of the CDHE, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the System’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a state-funded student financial assistance program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a state-funded student financial assistance program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as Recommendation #4 to be material weaknesses. The System’s response to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs and/or corrective action plan. The System’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of CDHE and System policies. Accordingly, this report is not suitable for any other purpose.

Denver, Colorado December 9, 2016

126 166 COLORADO STATE UNIVERSITY SYSTEM Schedule of Allocations, Expenditures and Reversions of the State-Funded Student Financial Assistance Programs Schedule of Findings and Questioned Costs Year Ended June 30, 2016

Material Noncompliance and Material Weakness – Internal Control over Compliance Eligibility and Payroll Procedures – Colorado Work-Study Program (Colorado State-Funded Student Financial Aid): Colorado State University – Pueblo

Colorado State-Funded Student Financial Aid, Work-Study Program Eligibility and Payroll Procedures (Colorado State Student Financial Aid)

Within the Colorado State-Funded Student Financial Aid program, in 1969, the 47th General Assembly of the State of Colorado authorized the establishment of the Colorado Work-Study Program for resident, undergraduate students attending state institutions of higher education. In 1971, the program was expanded through legislative action to include the local district junior colleges, and further amended in 1973 to authorize payment for jobs provided by non-profit organizations and governmental agencies through student employment contracts. The Colorado Work-Study Program is an employment program designed to allow Colorado resident undergraduate students to earn funds to assist in attending eligible educational institutions in Colorado. Employment may be in jobs at eligible Colorado educational institutions, non-profit organizations, governmental agencies, or for-profit organizations. Funds for the Colorado Work-Study program are allocated by the Colorado Department of Higher Education (DHE) to the State’s universities, including CSU-Pueblo.

Students who have applied for financial aid and are awarded financial aid through the Colorado Work-Study Program receive a check generated from the University’s payroll system either monthly or bi-monthly based on actual hours worked. Once the student has reached his/her maximum award amount, the payroll system is automatically set to change the funding to University general fund dollars. If a student is marked as ineligible or has his/her Satisfactory Academic Progress status marked as “Suspension”, the payroll system is programmed to deny payment from the Federal funding source and change the funding source to general funding.

During Fiscal Year 2016, CSU–Fort Collins and CSU-Pueblo expended approximately $13.2 million and $4.5 million, respectively in Colorado State-Funded Student Financial Aid during the year, which included approximately $2.1 million and $800 thousand, respectively, of Colorado Work-Study funding.

What was the purpose of our audit work and what work was performed?

The purpose of our audit work was to determine whether the CSU-Fort Collins and Pueblo campuses complied with eligibility and payroll procedure requirements of the Colorado State-Funded Student Financial Aid, Work- Study Program during Fiscal Year 2016.

For our eligibility testing, we sampled 27 individuals -- 20 students from CSU-Fort Collins and seven students from CSU-Pueblo -- out of approximately 1,400 who received Colorado Work-Study funding during Fiscal Year 2016. We viewed students’ award information in both campuses’ student ledger systems to test various eligibility attributes as defined in the 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado-Funded Student Aid, issued by the Department of Higher Education (DHE).

127 167 COLORADO STATE UNIVERSITY SYSTEM Schedule of Allocations, Expenditures and Reversions of the State-Funded Student Financial Assistance Programs Schedule of Findings and Questioned Costs (continued) Year Ended June 30, 2016

For our payroll testing, we sampled 26 individuals, selected separately from the individuals in the eligibility testing above, 17 students from CSU–Fort Collins and 9 students from CSU–Pueblo, out of approximately 1,400 who received Colorado Work-Study funding during Fiscal Year 2016. As part of our testing, we reviewed the students’ Work-Study Program employment authorization forms and earnings documentation, such as copies of the students’ W-2s and CSU-Fort Collins’ and CSU-Pueblo’s payroll registers.

How were the results of the audit work measured?

The 2015-16 Audit Guide for State and Private Non-Profit Institutions of Higher Education, Colorado-Funded Student Aid, issued by DHE indicates that in order for a student to be eligible to receive any State-Funded Student Financial Aid, including through participation in the Colorado Work-Study Program, a student must be in good standing and demonstrate academic progress according to the institution's published Standards of Satisfactory Academic Progress for financial aid purposes. Satisfactory Academic Progress is measured by a cumulative grade point average of 2.0 for undergraduate programs and 3.0 for graduate programs on a 4.0 scale.

State institutions have the option to create their own payroll-related policies or to adopt the 2015-16 Guidelines for Administering State-Funded Student Assistance Programs, issued by DHE. CSU-Pueblo has elected to follow the DHE guidelines as the University's adopted policies for State-Funded Student Financial Aid. Per Section 6.03.02, students are not to earn more financial assistance than their award. Earnings in excess of tolerance levels ($300) are considered an over award, may not be paid from Colorado Work-Study funds, and, if not able to be counted as a student's resource in subsequent periods of enrollment, will be considered an institutional liability.

What problems did the audit work identify?

Based on our eligibility testing, we identified one student out of our sample of seven students at the CSU-Pueblo campus who received State-Funded Student Financial Aid through the Colorado Work-Study program while the student was ineligible for the assistance. Specifically, the student received $1,314 of aid while he/she was on Satisfactory Academic Progress Suspension at CSU-Pueblo. In addition, this student was also paid approximately $535 in excess of his/her $1,500 award amount for Fiscal Year 2016.

Based on our payroll procedures testing, we also identified one student out of our sample of nine CSU–Pueblo students, who was paid $632 in excess of his or her $2,297 Colorado Work-Study award amount.

Why did these problems occur?

CSU-Pueblo does not have sufficient procedures in place to ensure its payroll system awards assistance appropriately. CSU-Pueblo staff indicated that they rely on the automated system controls and do not perform any system monitoring to ensure amounts paid do not exceed award amounts and payments are not made to ineligible students. CSU-Pueblo has not determined why the payroll system generated the payment to the ineligible student or did not modify the funding source when the students’ award amounts were exceeded.

128 168 COLORADO STATE UNIVERSITY SYSTEM Schedule of Allocations, Expenditures and Reversions of the State-Funded Student Financial Assistance Programs Schedule of Findings and Questioned Costs (continued) Year Ended June 30, 2016

Why do these problems matter?

It is important for CSU-Pueblo to ensure that the Colorado Work-Study funding it receives is provided only to eligible students and in accordance with the Program rules so the institution can demonstrate program compliance and ensure accountability for program funds received. CSU-Pueblo has repaid the Colorado Work-Study Program through a transfer of institutional general fund dollars to the program.

(Colorado State Student Financial Aid, Work-Study Program. Classification of Finding: Material Weakness and Material Noncompliance; Total known questioned costs of $1,946)

Recommendation No. 4:

Colorado State University - Pueblo (CSU-Pueblo) should ensure it complies with State-Funded Student Financial Aid, Colorado Work-Study Program requirements. This should include researching and resolving the system issues identified through our audit to ensure Work-Study Program disbursements are only provided to eligible students up to the student’s maximum award amount. In addition, until the system issues are resolved, CSU- Pueblo should implement a monitoring process to ensure Work-Study Program disbursements are not provided to an ineligible student or in excess of the student’s award amount.

Response:

Agree. CSU-Pueblo’s Financial Aid Office worked with a PowerFAIDs, CSU-Pueblo’s student financial aid system, consultant who recommended an enhanced internal control that identifies students who may become ineligible from one term to the next. A work-study earnings report will be generated out of PowerFAIDS and a Student Employment Reconciliation Report will be generated out of AIS, CSU-Pueblo’s student accounts receivable system. A pivot table will be used to compare the funding levels and maintain reconciliation of State- Funded Student Financial Aid, Colorado Work-Study. If any errors are identified they will be corrected immediately by our Student Employment and Academic Progress Manager. If a student is nearing their maximum award amount both the student and the supervisor will receive an electronic communication. This process will occur monthly in congruence with reconciliation. This internal control improvement has been added to the current policies and procedures.

Implementation Date: November 2016.

129 169

COLORADO STATE UNIVERSITY SYSTEM Schedule of Allocations, Expenditures, and Reversions of the State-Funded Student Financial Assistance Programs Schedule of Prior Audit Findings Year Ended June 30, 2016

Reference Number Summary of Finding Status

No matters are reportable.

130 170 Item 2 Status of FY2016-17 Audit Plan 171 172 Item 3 Review of Audit Reports Issued 173 Colorado State University System

Audit of CSU Bookstore – Colorado State University

EXECUTIVE SUMMARY December 22, 2016

Background Information Results and Conclusions

The CSU Bookstore is a full-service bookstore that operates in the Based on the audit objectives listed above, we made the following Lory Student Center within the Division of Student Affairs. The recommendations, based on the audit findings: bookstore provides its customers with text books, apparel and 1. Consult with the Office of General Council to determine what accessories, art and office supplies and general read books. actions (if any) should be taken to obtain reimbursement for the Additionally, the bookstore carries Semester at Sea merchandise. The travel expenditures that had been covered by an outside bookstore returns all revenues to CSU for student programs and organization. services. 2. Formalize the current review process for voided transactions. The bookstore should document their current process and The former Assistant Director of the bookstore also served as the include it as a part of the formal office policies and procedures Treasurer of the Rocky Mountain Skyline Bookstore Association manual. They should continue to monitor these transactions the (RMSBA). Upon his retirement from the university on October 31, following business day. 2015, he transitioned these duties to the current director of the bookstore. The current director noticed some financial irregularities We have discussed the findings and recommendations with within the accounts of the RMSBA and asked Internal Audit to management, and are satisfied that completion of the proposed action conduct a review of his financial transactions at the CSU Bookstore. will mitigate the issues noted. Details may be found in Audit Report The discrepancies related to the RMSBA accounts were turned over to 17-04 issued the same date as this Executive Summary. the City of Fort Collins Police Department for investigation. Implementation has already been completed for both recommendations. We consider this audit to be closed. Scope and Objectives We would like to express our appreciation to the CSU Bookstore and The limited audit scope included information related to CSU staff for their assistance and cooperation during the audit. Bookstore functions and financial transactions under the direction of the former Assistant Director. This included reviewing the purchasing card and travel transactions for this individual. Internal Auditing also ______reviewed the void process and certain Kuali Financial System Allison A. Horn – Director, Internal Auditing transactions executed by the individual. We noted an instance of travel reimbursement for expenses that had been paid by the outside organization.

Page 2 of 4

174 Item 4 Past Due Audit Recommendations 175 176 177 Item 5 FY18 Campus Incremental Budget & Tuition Update 178 FY18 Incremental E&G Budget - V.2.3 Colorado State University - Fort Collins Tuesday, January 24, 2017

Rate = 5% Rate = 6% Rate = 4.5% New Resources Tuition Undergraduate-Enrollment Growth Increase in FTE $ 9,333,000 - - Change in mix - RES vs. NRES 5,298,000 5,325,000 5,285,000 Undergraduate Rate Increase Resident 7,446,000 8,937,000 6,701,000 Non-Resident 2,799,000 - - Graduate Rate Increase Resident 422,000 - - Non-Resident 606,000 - - Professional Veterinary Medicine Rate Increase 1,507,425 - - Differential Tuition 974,594 - - Total Tuition $ 28,386,019 29,904,019 27,628,019 State Funding Impact 2,934,210 - - Facilities and Administrative Overhead 255,000 - - Other - - - Total $ 31,575,229 33,093,229 30,817,229 New Expenses Multi-Year Central Investments in Strategic Initiatives $ 1,700,000 - - Faculty/Staff Compensation 11,743,000 - - Academic Incentive Funding 8,555,323 - - Financial Aid 6,324,000 6,622,000 6,175,000 Mandatory Costs 4,968,000 - - Quality Enhancements 1,370,000 - - Reallocation (3,000,000) - -

Total $ 31,660,323 31,958,323 31,511,323

Net $ (85,094) 1,134,906 (694,094)

Incremental Cost of Salary Increases 3.00% 3.50% 4.00% Faculty/AP $ 1,669,863 $ 3,340,173 $ 5,010,484 State Classified $ 262,708 $ 525,326 $ 787,944 $ 1,932,571 $ 3,865,499 $ 5,798,428

1% RUG Increase = student share $87/yr $1,491,000 1% Increase NRUG = student share $260/yr $1,120,000

Base Assumptions Resident Undergraduate 5%; $435.80/yr Non-Resident Undergraduate 2.5%; $650.20/yr Resident Graduate 3%; $288.80/yr and Resident Professional Veterinary Medicine 7%; $2,058/yr Non-Resident Graduate 3%; $705.20/yr and Non-Resident Professional Veterinary Medicine 2%; $1,088/yr Differential Tuition - UG - 2.5% Salary Increases Faculty/AP -2.5% Salary Increases SC 2.5% Internal Reallocations 1.2% Fees around X% 179 180

FY18 Incremental E&G Budget - V.3.0 Colorado State University - Pueblo Friday, January 20, 2017

Rate = 5% Rate = 6% Rate = 4.5%

New Resources

Tuition Undergraduate Rate Increase Resident $ 915,000 $ 1,098,000 $ 824,000 Non-Resident and WUE 388,000 466,000 350,000 Graduate Rate Increase - - - Resident 28,000 33,000 25,000 Non-Resident 18,000 22,000 16,000 Resident Teacher Education Program 10,000 12,000 9,000 Differential Tuition 41,000 49,000 37,000 Projected Enrollment Change (2.6% decline) (780,000) (780,000) (780,000) Total Tuition 620,000 900,000 481,000 Change in State Funding 958,000 958,000 958,000 Total $ 1,578,000 $ 1,858,000 $ 1,439,000

New Expenses Total Financial Aid Change 155,000 225,000 120,000

Salary increases: Faculty and Administrative Professionals (2.5%) 625,000 625,000 625,000 Salary increases: State Classified Employees (2.5%) 188,000 188,000 188,000 Equity Adjustments 100,000 100,000 100,000 Faculty Promotions 150,000 150,000 150,000 Fringe Benefit Rate Increase 250,000 250,000 250,000 Other Mandatory Costs* 430,000 430,000 430,000 Miscellaneous Adjustments - - - Commitments/Quality Enhancements: - - - Contingency Funds - - Total $ 1,898,000 $ 1,968,000 $ 1,863,000

Net $ (320,000) $ (110,000) $ (424,000)

Incremental Cost of Salary Increases 3.0% 3.5% 4.0% Faculty/AP $ 125,000 $ 250,000 $ 375,000 State Classified $ 37,500 $ 75,000 $ 112,500 $ 162,500 $ 325,000 $ 487,500

Base Assumptions Scenario 1: 5.0% tuition increase for all tuition categories. Scenario 2: 6.0% tuition increase for all tuition categories. Scenario 3: 4.5% tuition increase for all tuition categories.

Salary increases Faculty/AP: 2.5%. Salary increases Classified: 2.5%. Fees at X%.

* This line includes anticipated increases for the following expenses: utilities, maintenance costs, statewide indirect costs, library subscriptions, sheriff's contract, payments to risk management (liability and property insurance), information technology inflation, background checks, system costs, audit expenditures, and fees for collections.

-2.6% Enrollment 1/20/2017, 9:33 AM Page 1 181 Item 6 FY17 2nd Quarter Financial Statements 182 Colorado State University System Statement of Revenues, Expenses and Changes in Net Position Three Year Trend

FY 2015 FY 2016 FY 2017 FY 2017 FY 2017 FY 2017 % Variance Actual Actual Original Budget YTD Budget Q2 Q2 Q1

Operating revenues Student tuition and fees $ 460,303,854 500,084,091 553,384,945 274,972,491 273,507,998 -0.5% 265,295,949 State fee for service revenue 78,930,768 91,722,886 91,470,591 45,735,294 45,735,294 0.0% 22,867,647 Grants and contracts 274,318,833 291,130,967 308,375,701 151,886,980 150,298,713 -1.0% 76,140,887 Sales and services of educational activities 33,762,571 37,875,339 35,144,436 19,718,317 20,233,392 2.6% 9,762,393 Auxiliary enterprises 153,865,332 163,533,393 166,495,715 86,362,571 88,809,461 2.8% 67,739,524 Other operating revenue 10,132,729 10,928,246 12,293,893 5,934,461 5,851,956 -1.4% 2,104,312 Total operating revenues 1,011,314,087 1,095,274,922 1,167,165,281 584,610,113 584,436,814 0.0% 443,910,712

Operating expenses Instruction 293,171,205 307,078,021 309,147,442 154,191,125 156,647,752 -1.6% 64,286,436 Research 187,160,137 195,137,959 200,700,000 94,808,644 93,933,496 0.9% 49,559,140 Public service 90,677,017 101,730,984 112,150,120 51,179,811 52,843,646 -3.3% 26,962,487 Academic support 79,861,280 84,590,370 102,368,731 48,931,417 47,062,163 3.8% 29,404,688 Student services 51,875,352 58,968,676 67,849,382 32,899,888 32,534,344 1.1% 16,220,453 Institutional support 62,601,791 66,189,484 69,071,024 37,203,659 36,682,899 1.4% 19,975,456 Operation and maintenance of plant 75,940,549 74,160,688 77,013,196 39,442,556 39,512,227 -0.2% 18,982,412 Scholarships and fellowships 30,660,619 30,185,078 34,495,178 18,791,463 18,065,445 3.9% 12,747,641 Auxiliary enterprises 143,188,413 148,649,236 145,814,773 74,346,449 75,703,104 -1.8% 36,508,977 Depreciation 89,538,159 94,957,807 101,825,596 47,442,926 45,799,003 3.5% 22,959,045 Total operating expenses 1,104,674,522 1,161,648,303 1,220,435,442 599,237,937 598,784,078 0.1% 297,606,734 Operating Income (Loss) (93,360,435) (66,373,380) (53,270,161) (14,627,824) (14,347,264) 1.9% 146,303,978

Non-operating revenues (expenses) State appropriations 2,355,000 2,143,895 2,150,000 - - - Gifts 44,404,784 48,507,119 43,100,000 19,473,000 19,446,101 -0.1% 10,247,872 Investment income 3,900,704 7,108,698 6,114,172 2,312,708 2,674,707 15.7% 1,666,815 Interest expense on capital debt (26,971,190) (25,533,657) (34,000,000) (15,686,000) (15,684,724) 0.0% (6,995,376) Federal nonoperating grants and contracts 41,115,631 41,175,739 46,795,178 24,379,589 23,298,708 -4.4% 18,916,647 Other nonoperating revenues (expenses) 10,788,905 5,805,246 6,100,000 4,139,000 4,162,840 0.6% 2,510,660 Net nonoperating revenues 75,593,834 79,207,040 70,259,350 34,618,297 33,897,632 -2.1% 26,346,619 Income (Loss) Before other revenues (17,766,601) 12,833,660 16,989,189 19,990,473 19,550,368 -2.2% 172,650,597

Other revenues (expenses) State capital contributions 17,152,774 19,831,209 41,826,475 18,452,825 18,456,485 0.0% 7,492,792 Capital grants 12,591,382 8,116,638 8,000,000 3,152,000 3,202,680 1.6% 1,122,939 Capital gifts 21,054,584 10,451,580 11,000,000 792,000 791,742 0.0% 313,695 Payments (to)/from governing boards or other institutions 629,140 220,042 1,037,615 250,744 227,227 -9.4% 170,697 Additions to permanent endowments (245,754) (729,780) 1,000,000 - - - Total other revenues 51,182,126 37,889,689 62,864,090 22,647,569 22,678,134 0.1% 9,100,124

Increase (decrease) in net position $ 33,415,525 50,723,349 79,853,279 42,638,042 42,228,502 -1.0% 181,750,720

C:\Users\MullenB\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GQ7EDCFR\ CSU System Q2 FY17 SRECNP Statements CSUS SRECNP 183 Colorado State University Statement of Revenues, Expenses and Changes in Net Position Three Year Trend

FY 2015 FY 2016 FY 2017 FY 2017 FY 2017 FY 2017 % Variance Actual Actual Original Budget YTD Budget Q2 Q2 Q1

Operating revenues Student tuition and fees $ 363,593,738 391,162,529 426,000,000 214,928,698 214,270,731 -0.3% 226,318,587 State fee for service revenue 71,706,368 82,680,714 82,668,228 41,334,114 41,334,114 0.0% 20,667,057 Grants and contracts 261,659,846 278,955,266 296,000,000 144,090,288 142,734,688 -0.9% 72,960,457 Sales and services of educational activities 33,749,510 37,737,530 35,000,000 19,518,317 20,030,122 2.6% 9,616,289 Auxiliary enterprises 144,809,559 155,275,006 157,600,000 81,524,086 84,084,507 3.1% 64,023,155 Other operating revenue 6,661,758 7,630,516 8,000,000 4,062,367 3,937,754 -3.1% 1,776,400 Total operating revenues 882,180,779 953,441,561 1,005,268,228 505,457,870 506,391,916 0.2% 395,361,945

Operating expenses Instruction 261,240,321 270,439,490 269,000,000 134,500,000 137,785,492 -2.4% 55,137,338 Research 186,131,875 194,049,160 198,700,000 94,008,644 93,166,837 0.9% 49,255,880 Public service 90,494,542 101,570,692 112,000,000 51,044,751 52,633,551 -3.1% 26,882,017 Academic support 71,353,494 75,957,441 92,000,000 43,240,000 41,464,516 4.1% 26,896,125 Student services 29,482,324 31,304,849 34,000,000 15,889,747 15,973,924 -0.5% 7,762,402 Institutional support 45,298,522 48,321,483 49,000,000 26,598,330 26,363,330 0.9% 14,723,230 Operation and maintenance of plant 67,843,943 65,926,619 68,000,000 35,360,000 35,494,244 -0.4% 16,644,411 Scholarships and fellowships 9,952,019 10,832,032 11,000,000 7,043,874 7,096,524 -0.7% 4,601,737 Auxiliary enterprises 130,258,276 133,761,203 132,600,000 66,946,176 68,506,586 -2.3% 32,695,598 Depreciation 82,575,435 87,776,634 94,600,000 43,749,457 41,995,289 4.0% 21,053,782 Total operating expenses 974,630,751 1,019,939,603 1,060,900,000 518,380,979 520,480,293 -0.4% 255,652,520 Operating Income (Loss) (92,449,972) (66,498,042) (55,631,772) (12,923,109) (14,088,377) -9.0% 139,709,425

Non-operating revenues (expenses) State appropriations 2,355,000 2,143,895 2,150,000 - - - Gifts 41,342,150 42,798,208 40,000,000 18,822,000 18,821,773 0.0% 10,162,714 Investment income 3,262,710 6,070,823 5,500,000 2,127,000 2,127,673 0.0% 1,393,883 Interest expense on capital debt (22,218,575) (24,192,123) (29,000,000) (13,366,000) (13,366,147) 0.0% (6,171,147) Federal nonoperating grants and contracts 23,989,284 23,692,431 23,500,000 12,222,000 12,221,666 0.0% 10,974,800 Other nonoperating revenues (expenses) 10,415,187 5,718,468 6,000,000 4,089,000 4,089,487 0.0% 2,476,604 Net nonoperating revenues 59,145,756 56,231,702 48,150,000 23,894,000 23,894,452 0.0% 18,836,854 Income (Loss) Before other revenues (33,304,216) (10,266,340) (7,481,772) 10,970,891 9,806,075 -10.6% 158,546,279

Other revenues (expenses) State capital contributions 3,084,287 16,210,709 40,000,000 18,051,000 18,051,014 0.0% 7,324,255 Capital grants 12,573,030 7,955,584 8,000,000 3,152,000 3,151,956 0.0% 1,092,216 Capital gifts 21,054,584 10,127,744 11,000,000 792,000 791,742 0.0% 313,695 Payments (to)/from governing boards or other institutions (3,351,010) (5,001,606) (4,500,000) (2,431,000) (2,430,799) 0.0% (1,234,438) Additions to permanent endowments (245,754) (729,780) 1,000,000 - - - Total other revenues 33,115,137 28,562,651 55,500,000 19,564,000 19,563,913 0.0% 7,495,727

Increase (decrease) in net position $ (189,079) 18,296,311 48,018,228 30,534,891 29,369,988 -3.8% 166,042,006 C:\Users\MullenB\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GQ7EDCFR\ CSU System Q2 FY17 SRECNP Statements CSU SRECNP 184 Colorado State University - Board of Governors Statement of Revenues, Expenses and Changes in Net Position Three Year Trend FY 2017 FY 2017 FY 2017 FY 2015 FY 2016 Original FY 2017 % Q2 Q1 Actual Actual Budget YTD Budget Q2 Variance Operating revenues Student tuition and fees $ ------State fee for service revenue ------Grants and contracts ------Sales and services of educational activities ------Auxiliary enterprises ------Other operating revenue ------Total operating revenues ------

Operating expenses Instruction ------Research ------Public service - 23,820 - - 70,619 36,049 Academic support ------Student services ------Institutional support 5,395,974 6,236,950 6,915,912 3,457,956 3,502,286 -1.3% 1,701,053 Operation and maintenance of plant ------Scholarships and fellowships 18,179 3,707 - - - - Auxiliary enterprises ------Depreciation ------Total operating expenses 5,414,153 6,264,477 6,915,912 3,457,956 3,572,905 1,737,102 Operating Income (Loss) (5,414,153) (6,264,477) (6,915,912) (3,457,956) (3,572,905) (1,737,102)

Non-operating revenues (expenses) State appropriations ------Gifts ------Investment income (36,148) (16,928) - - (0) (0) Interest expense on capital debt ------Federal nonoperating grants and contracts ------Other nonoperating revenues (expenses) - - - - - (4) Net nonoperating revenues (36,148) (16,928) - - (0) (4) Income (Loss) Before other revenues (5,450,301) (6,281,405) (6,915,912) (3,457,956) (3,572,905) (1,737,106)

Other revenues (expenses) State capital contributions ------Capital grants ------Capital gifts ------Payments (to)/from governing boards or other institutions 5,259,678 5,970,638 6,915,912 3,295,106 3,292,454 -0.1% 1,722,349 Additions to permanent endowments ------Total other revenues 5,259,678 5,970,638 6,915,912 3,295,106 3,292,454 1,722,349

Increase (decrease) in net position $ (190,623) (310,767) - (162,850) (280,451) -72.2% (14,757) C:\Users\MullenB\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GQ7EDCFR\ CSU System Q2 FY17 SRECNP Statements BOG SRECNP 185 Colorado State University - Global Campus Statement of Revenues, Expenses and Changes in Net Position Three Year Trend FY 2017 FY 2017 FY 2015 FY 2016 Original FY 2017 FY 2017 YTD Budget Q2 Actual Actual Budget Q2 % Variance Q1 Operating revenues Student tuition and fees $ 63,603,436 76,468,054 91,343,096 40,581,195 39,931,654 -1.6% 19,518,275 State fee for service revenue ------Grants and contracts ------Sales and services of educational activities ------Auxiliary enterprises ------Other operating revenue 1,843,092 1,919,797 2,193,893 1,389,094 1,437,643 3.5% 69,256 Total operating revenues 65,446,528 78,387,850 93,536,989 41,970,289 41,369,297 -1.4% 19,587,532

Operating expenses Instruction 12,605,994 16,240,963 19,277,427 9,316,117 8,863,462 4.9% 3,799,904 Research ------Public service ------Academic support 4,457,086 4,651,949 6,268,731 3,026,417 2,914,394 3.7% 1,369,063 Student services 16,905,263 21,886,826 27,749,992 13,838,458 13,449,581 2.8% 6,602,579 Institutional support 6,306,771 5,935,999 7,382,631 3,395,260 3,245,577 4.4% 1,600,309 Operation and maintenance of plant 491,710 531,924 514,878 258,313 285,816 -10.6% 139,002 Scholarships and fellowships 8,474,220 9,628,414 13,095,178 6,547,589 5,578,985 14.8% 2,746,790 Auxiliary enterprises ------Depreciation 287,116 399,948 525,596 209,469 199,200 4.9% 99,896 Total operating expenses 49,528,160 59,276,022 74,814,433 36,591,623 34,537,015 5.6% 16,357,544 Operating Income (Loss) 15,918,368 19,111,828 18,722,556 5,378,665 6,832,282 27.0% 3,229,987

Non-operating revenues (expenses) State appropriations ------Gifts ------Investment income 332,273 940,078 274,172 73,508 431,070 486.4% 207,193 Interest expense on capital debt ------Federal nonoperating grants and contracts 8,474,220 9,628,414 13,095,178 6,547,589 5,578,985 -14.8% 2,746,790 Other nonoperating revenues (expenses) (161,250) - - - 22,908 8,834 Net nonoperating revenues 8,645,243 10,568,492 13,369,350 6,621,097 6,032,963 -8.9% 2,962,817 Income (Loss) Before other revenues 24,563,611 29,680,320 32,091,906 11,999,762 12,865,246 7.2% 6,192,804

Other revenues (expenses) State capital contributions ------Capital grants ------Capital gifts ------Payments (to)/from governing boards or other institutions 547,235 (724,056) (724,056) (362,028) (383,124) -5.8% (191,562) Additions to permanent endowments ------Total other revenues 547,235 (724,056) (724,056) (362,028) (383,124) 5.8% (191,562)

Increase (decrease) in net position $ 25,110,846 28,956,264 31,367,850 11,637,734 12,482,122 7.3% 6,001,242

Comments: • Operation and Maintance of Plant, -10.6%: Leased Building Maintenance higher than budget for first QTR • Investment Income, -486.4%: During budget planning assumed treasury funds would be transferred per the 1st draft of reserve policy • Payments (to)/from governing boards or other institutions, 5.8%: During budget planning did not know board support figure, budgeted same amount as prior year

C:\Users\MullenB\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GQ7EDCFR\ CSU System Q2 FY17 SRECNP Statements CSU-GC SRECNP 186 Colorado State University Pueblo Statement of Revenues, Expenses and Changes in Net Position Three Year Trend

FY 2017 FY 2017 FY 2015 FY 2016 FY 2017 FY 2017 YTD % Variance Q2 Q1 Actual Actual Original Budget Budget Q2 Operating revenues Student tuition and fees $ 33,106,680 32,453,508 36,041,849 19,462,598 19,305,613 -0.8% 19,459,086 State fee for service revenue 7,224,400 9,042,172 8,802,363 4,401,180 4,401,180 0.0% 2,200,590 Grants and contracts 12,658,987 12,175,701 12,375,701 7,796,692 7,564,025 -3.0% 3,180,430 Sales and services of educational activities 13,061 137,809 144,436 200,000 203,270 1.6% 146,104 Auxiliary enterprises 9,055,773 8,258,387 8,895,715 4,838,485 4,724,954 -2.3% 3,716,370 Other operating revenue 1,627,879 1,377,933 2,100,000 483,000 476,559 -1.3% 258,656 Total operating revenues 63,686,780 63,445,510 68,360,064 37,181,955 36,675,601 -1.4% 28,961,236

Operating expenses Instruction 19,324,890 20,397,568 20,870,015 10,375,008 9,998,798 3.6% 5,349,194 Research 1,028,262 1,088,799 2,000,000 800,000 766,659 4.2% 303,260 Public service 182,475 136,472 150,120 135,060 139,475 -3.3% 44,421 Academic support 4,050,700 3,980,980 4,100,000 2,665,000 2,683,253 -0.7% 1,139,500 Student services 5,487,765 5,777,000 6,099,390 3,171,683 3,110,839 1.9% 1,855,471 Institutional support 5,600,524 5,695,052 5,772,481 3,752,113 3,571,706 4.8% 1,950,864 Operation and maintenance of plant 7,604,896 7,702,145 8,498,318 3,824,243 3,732,167 2.4% 2,198,999 Scholarships and fellowships 12,216,201 9,720,925 10,400,000 5,200,000 5,389,936 -3.7% 5,399,114 Auxiliary enterprises 12,930,137 14,888,033 13,214,773 7,400,273 7,196,518 2.8% 3,813,379 Depreciation 6,675,608 6,781,225 6,700,000 3,484,000 3,604,514 -3.5% 1,805,366 Total operating expenses 75,101,458 76,168,199 77,805,097 40,807,379 40,193,866 1.5% 23,859,568 Operating Income (Loss) (11,414,678) (12,722,689) (9,445,033) (3,625,424) (3,518,265) 3.0% 5,101,668

Non-operating revenues (expenses) State appropriations - - - - - Gifts 3,062,634 5,708,911 3,100,000 651,000 624,328 -4.1% 85,158 Investment income 341,869 114,725 340,000 112,200 115,964 3.4% 65,738 Interest expense on capital debt (4,752,615) (1,341,534) (5,000,000) (2,320,000) (2,318,577) 0.1% (824,229) Federal nonoperating grants and contracts 8,652,127 7,854,894 10,200,000 5,610,000 5,498,057 -2.0% 5,195,058 Other nonoperating revenues (expenses) 534,968 86,778 100,000 50,000 50,445 0.9% 25,226 Net nonoperating revenues 7,838,983 12,423,774 8,740,000 4,103,200 3,970,217 -3.2% 4,546,951 Income (Loss) Before other revenues (3,575,695) (298,915) (705,033) 477,776 451,952 -5.4% 9,648,619

Other revenues (expenses) State capital contributions 14,068,487 3,620,500 1,826,475 401,825 405,471 0.9% 168,538 Capital grants 18,352 161,054 - - 50,724 30,724 Capital gifts - 323,836 - - - - Payments (to)/from governing boards or other institutions (1,826,763) (24,934) (654,241) (251,334) (251,304) 0.0% (125,652) Additions to permanent endowments ------Total other revenues 12,260,076 4,080,456 1,172,234 150,491 204,891 36.1% 73,609

Increase (decrease) in net position $ 8,684,381 3,781,541 467,201 628,266 656,844 4.5% 9,722,229

C:\Users\MullenB\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GQ7EDCFR\ CSU System Q2 FY17 SRECNP Statements CSU-P SRECNP 187 Item 7 Approval of Changes to the CSU System Debt Policy 188 The Board of Governors of the Colorado State University System Meeting Date: February 2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

The Board of Governors of the Colorado State University System (the “Board”) approval of the revised CSUS Board Debt Management Policy, Board Policy 202.

RECOMMENDED ACTION:

MOVED, that the Board hereby approves the attached revised CSUS Board Debt Management Policy, Board Policy 202.

EXPLANATION PRESENTED BY: Dr. Tony Frank, Chancellor, Colorado State University System, and Lynn Johnson, Chief Financial Officer, Colorado State University System, and Margaret Henry, Treasurer, Colorado State University System

The Board previously established its CSUS Board Debt Management Policy, which sets forth the guidelines for the prudent use and management of debt for the System. Board Policy 202 contemplates that additional revisions may be necessary, and the Chief Financial Officer of the System is charged with periodically reviewing this Debt Management Policy and recommending any changes necessary to ensure that it meets System objectives. These revisions to the CSUS Board Debt Management Policy are being recommended by the System CFO following the review of the policy.

The revised Debt Management Policy includes several minor changes, such as clarifying that the System may use debt financing for projects that are strategic priorities and in capital plans, and that the System may utilize variable-rate debt when appropriate. Also, the updated policy states that financial covenants and restrictions should be minimized, taking into consideration the long- term capital requirements of the System. In addition, the revised policy recognizes that any debt capacity analysis is a subjective measure and that consideration should be given to bond rating agencies, yet the System does not manage its debt portfolio to achieve a specific rating. With respect to compliance, the revised policy includes a role for the System Treasurer in post- issuance compliance and adds language to include a SEC required bond compliance program.

Finally, the modified policy includes several miscellaneous changes. With respect to private use, the policy notes that private use is limited to 10% for qualified bonds. For auxiliary supported projects, the new policy specifies that a minimum 10-year pro-forma financial analysis is

Approval of the Revised Board Debt Management Policy

189 The Board of Governors of the Colorado State University System Meeting Date: February 2, 2017 Action Item

required to demonstrate viability. And the periodic review of the CSUS Debt Management Policy is now every three (3) years instead of annually.

______Approved Denied Scott C. Johnson, Board Secretary

______Date

Approval of the Revised Debt Management Policy Page 2 of 2 190

Colorado State University System Board Debt Management Policy Summary of Revisions

Board Debt Management Policy • Simplify language to state the System may use debt financing for projects that are strategic priorities and in capital plans.

Debt Structure • Simplify language to state System may utilize variable-rate debt when appropriate.

• Debt capacity: recognizing that any debt capacity analysis is a subjective measure and that consideration should be given to bond rating agencies, but the System does not manage its debt portfolio to achieve a specific rating.

Risk Management • Added language to include a SEC required bond compliance program/policy.

• Added a sentence regarding financial covenants and restrictions should be minimized, taking into consideration the long-term capital requirements of the System.

Financing Procedures • Specified that a minimum 10-year pro-forma analysis is required for auxiliary supported projects.

Updates and Revisions • Changed the review of the Debt Management Policy from annually to every three years.

Roles, Responsibilities and Procedures • Added a role for Treasurer in post-issuance compliance.

Recordkeeping/Generally Accepted Accounting Principles/Arbitrage Compliance • Added language to include a SEC required bond compliance program/policy.

Private Use • Corrected to private use is limited to 10% for qualified bonds. COLORADO STATE UNIVERSITY SYSTEM 191

Policy and Procedures Manual

SUBJECT: BUDGET AND FINANCE

Policy 202: CSUS Board Debt Management Policy

Board Debt Management Policy:

The Colorado State University System’s Debt Management Policy (“Debt Policy”) establishes guidelines for the prudent use and management of debt for the System, including the recognition of the System’s consolidated revenue pledge.

Debt financing is a source of funding that allows the System to finance the cost of capital improvements for one of its component institutions over a period of time typically related to the useful life of the asset.

The System may use debt financing for academic, administrative, and auxiliary facilities and equipment, as well as any other infrastructure needs or property acquisitions, that are consistent with the System’s strategic priorities and part of the System’s capital plans. Decisions regarding the appropriate use of debt should be balanced to ensure the System’s financial health – as well as the financial health of its component institutions - while also considering the effects of current decisions on future costs of capital and operating budgets. Adherence to the following policies will ensure that risks associated with debt issuance are effectively managed.

Procedures: A. Affordability 1. When issuing debt, the System will seek the lowest-cost source of funding available commensurate with the most favorable financial terms, conditions, and risks that are consistent with the System’s capital structure and financing requirements.

2. External borrowings will be coordinated to the extent practicable so that multiple project needs can be accomplished in a single borrowing, thereby reducing

issuance costs. 3. The System will consider credit enhancement, such as bond insurance, letters of credit or the Colorado Higher Education Intercept Program, when it is cost beneficial to do so and/or results in more favorable loan covenants.

4. All debt-financed projects must have an identified revenue stream (or cost reduction) and must be supported by an achievable plan of finance that includes

1 | Page COLORADO STATE UNIVERSITY SYSTEM 192

servicing the debt and meeting any new or increased operating costs.

5. The cost of debt-financed capital acquisitions should be charged to the future users of the capital asset over the period the debt is outstanding and the asset's useful life (as legally permitted). The System may, however, issue debt for a term shorter than the asset’s useful life.

6. All debt payments will be provided for in the annual operating budget.

B. Debt Structure 1. In general, fixed-rate debt will be utilized. However, the System may utilize variable-rate debt when appropriate for a particular financing plan, taking into consideration bond market conditions, the System’s liquidity position, and risks associated with variable rate date (including interest rate risk, remarketing risk and liquidity renewal risk)

2. The financing mode, term, and financing instrument must be appropriate for the project(s) financed. Given the System’s credit consolidation efforts, the master revenue bond resolution is intended to be the primary debt issuance vehicle, however, certificates of participation, commercial paper, and separately secured bonds may be issued if the Board deems such issuance to be in the System’s best interest.

3. The use of capitalized interest will only be considered for projects whose identified funding stream will not be able to immediately generate sufficient revenues to repay debt. In those instances, interest will not be capitalized for a period in excess of the construction period plus three months.

4. The System’s debt capacity will be determined from time to time, recognizing it is a subjective measure. Consideration should be given to bond rating agencies and related industry guidelines; however, the System does not manage its debt portfolio to achieve a specific rating. The System recognizes that strategy and mission must be the primary drivers of its use of debt.

5. The System shall evaluate, on a case by case basis, whether to utilize the Colorado Higher Education Intercept Program (or any successor programs) to provide credit enhancement to the System’s transaction.

C. Risk Management 1. The System will consider refinancing outstanding debt only when savings for the refinancing, measured on a net present value basis, are positive, or when the refinancing accomplishes other strategic objectives including budgetary relief or reducing or eliminating future risks.

2 | Page COLORADO STATE UNIVERSITY SYSTEM 193

2. The System will not default on its bond covenants and obligations. Meeting debt service obligations will be prioritized over competing budgetary needs of the System and institutions, including the use of reallocations and reductions when required.

3. Financial covenants and restrictions will be minimized to the extent possible, taking into consideration the long-term capital requirements of the System.

4. The System’s cash flow procedures will be managed to ensure the timely payment of debt service.

5. Compliance with debt reporting and financial covenants will be closely monitored and adhered to by the Chief Financial Officer with validation by external auditors. The System utilizes a post-issuance securities compliance firm to file and disseminate information provided by the System in connection with its continuing disclosure agreements to investors. The System may engage or appoint alternative agents to assist in satisfying its continuing disclosure requirements.

6. The following risks should be assessed before issuing debt:

a. Change in Public/Private Use The change in the public/private use of a project that is funded by tax-exempt funds could potentially cause a debt issue to become taxable. b. Default Risk The risk that revenues for debt service payments are not all received by the due date. c. Liquidity Risk The risk that the System will not be able to meet its current and future cash flow and collateral needs, both expected and unexpected, without materially affecting its daily operations or overall financial condition. d. Interest Rate Risk For variable rate debt, the risk that interest rates will rise, on a sustained basis, above levels that would have been set if the issue had been fixed.

D. Financing Procedures 1. The Chief Financial Officer of the System will have responsibility for any debt financing and issuances of debt and will coordinate all related activities with the campuses.

2. The Office of General Counsel has responsibility for all legal actions relating to

3 | Page COLORADO STATE UNIVERSITY SYSTEM 194

any debt financing, including reviewing all documents and legal opinions, and determining the role of external legal counsel.

3. The campus responsible for a proposed project will provide the Chief Financial Officer of the System the following information:

a. Total project cost. b. For auxiliary supported projects: i. At a minimum, a 10-year pro-forma showing all available revenues, expenses, and net revenues available to pay debt service. ii. A coverage ratio calculation within the Pro-forma applied to each project whereby revenues for the project exceed expenses and debt payments by a minimum of twenty-five (1.25) percent. Campuses may propose a lower debt coverage ratio but at a minimum must meet a ten percent threshold (1.10) on average. c. Project time schedule. d. A statement or certification to the CFO that a program plan was developed and approved by the board as required by Colorado Commission on Higher Education or the Capital Development Committee. e. Evidence of necessary approvals from the board, Colorado Commission on Higher Education, Capital Development Committee and when necessary the Joint Budget Committee before bonds may be issued for a project. f. Other information, as requested. 4. The System CFO in conjunction with the campuses will work with selected underwriters, financial advisors, bond counsel, and General Counsel to develop all necessary financial resolutions, policies, procedures, projections, and documents needed to successfully finance a project before the sale of bonds.

5. The CFO of the System in consultation with the campuses, General Counsel, and the Chancellor will determine the best timeline and process for the Board to approve all necessary financing documents.

6. The Office of General Counsel will assure that all legal opinions, bond documents, disclosure documents and any other required legal materials are satisfactory.

E. Procedures and Approvals for Refinancing 1. The Chief Financial Officer will review any refinancing plan presented by the System’s underwriting team and/or its financial advisor and the assumptions

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upon which the plan is based, and determine whether it is in the best interests of the System;

2. The Chief Financial Officer will work with departments affected by the refinancing to determine the best method for allocating savings.

F. Procedures and Approvals for All Financings 1. The Chief Financial Officer will assure that any issuance of debt is structured cost effectively and in the best interest of the System, taking into consideration the Debt Management Policy.

2. The Office of General Counsel will assure that all legal opinions, bond documents, disclosure documents and any other required legal materials are satisfactory.

3. The Chief Financial Officer, in consultation with the Office of General Counsel, will assure that all materials necessary for the Board to complete its review of the financing are provided to the Board in a timely manner.

4. The Board, upon a positive recommendation of the Finance Committee, will approve the bond purchase agreement and other financing documents.

G. Updates and Revisions The System’s Chief Financial Officer shall review this Debt Management Policy at least every three years and recommend any changes necessary to ensure that it continues to meet System objectives. The policy should also be reviewed as soon as practicable in the event of the significant changes in/of financial personnel or following any material changes to the System’s credit rating.

H. Post Issuance Compliance The Board of Governors of the Colorado State University System (CSUS) borrows through the issuance of tax-exempt bonds to finance acquisition and construction of, and improvements to, many of its facilities and other capital projects. Investors in tax- exempt bonds (which include bonds, Variable Rate Demand Notes and tax-exempt commercial paper notes) are willing to accept a lower coupon rate because interest earned on tax-exempt bonds is exempt from taxation. This exemption translates into a lower cost of capital for the University. Various requirements must be satisfied, however, for tax-exempt bonds to maintain their tax-exempt status. This section explains the guidelines and practices that the CSUS follows to remain in compliance with rules and regulations relating to tax-exempt bonds. Compliance is required both upon the issuance of the bonds and during the post-issuance phase which extends through and beyond the life of the bonds. An exception to these

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Guidelines may only be authorized by the System Post Issuance Compliance Coordinator, in consultation with the relevant University Post Issuance Compliance Coordinator and/or bond counsel based on a determination that such exception will not jeopardize the tax-exempt status of the applicable bond issue.

1. Roles, Responsibilities and Procedures a. System Post Issuance Compliance Coordinator: The System Post Issuance Compliance Coordinator has primary responsibility on behalf of the System for post-issuance compliance efforts. The System Post Issuance Compliance Coordinator oversees the compliance program and monitors and ensures that compliance tasks are performed in an appropriate and timely manner. The CSUS Treasurer is designated as the System Post Issuance Compliance Coordinator. b. University Post Issuance Compliance Coordinator: The University Post Issuance Compliance Coordinators have primary responsibility on behalf of Colorado State University or Colorado State University Pueblo, as the case may be, for post-issuance compliance efforts for their campus. The University Post Issuance Compliance Coordinators oversee various aspects of the compliance program for their campus as they monitor and ensure that campus based compliance tasks are performed in an appropriate and timely manner. The University Post Issuance Compliance Coordinators will perform such tasks and provide such information as the System Post Issuance Compliance Coordinator may request in support of the over-arching System post-issuance compliance efforts. The University Post Issuance Compliance Coordinator is to be designated by the President of each institution. c. School and Department Responsibilities: University or department senior finance officers have certain responsibilities with respect to capital projects and facilities financed with tax-exempt bonds. These individuals play a critical role in ensuring that their departments are in compliance with the Guidelines, and they are responsible for the accuracy and completeness of the information provided to their University Post Issuance Compliance Coordinator regarding the utilization of space. In addition, they are responsible for ensuring that their departments retain records for the appropriate timeframe. The Senior Finance Officers are designated by the respective University Post Issuance Compliance Coordinator. 2. Recordkeeping The System seeks to comply with regulatory record retention requirements. Good record retention and documentation provide evidence of compliance and is the foundation of a successful bond compliance program. The System Office will also retain all records relating to debt transactions for as

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long as the debt is outstanding, plus three years after the final redemption date of the transaction. 3. Generally Accepted Accounting Principles (GAAP) The System and institutions will comply with the standard accounting practices adopted by the Financial Accounting Standards Board and the Governmental Accounting Standards Board when applicable. The System Post Issuance Compliance Coordinator shall establish operating procedures with respect to the maintenance of relevant records and shall oversee compliance with such operating procedures. 4. Arbitrage Compliance Arbitrage arises when proceeds from a bond issue are invested and the yield on the investments is greater than the yield on the bonds. Negative arbitrage arises when the investment yield is less than the yield on the bonds. The Internal Revenue Code contains two separate sets of requirements relating to arbitrage, yield restriction and rebate, which must be satisfied to ensure that the bonds do not lose tax-exempt status. a. Yield Restriction The arbitrage rules generally prohibit proceeds of a bond issue from being invested in a yield in excess of the bond yield. b. Rebate Rebate-even if an exception to yield restriction applies, if arbitrage is earned on an issue, the excess earnings must be remitted to the U.S. Treasury Department unless an exception to rebate applies. The System’s objective is to invest bond proceeds to the bond yield or higher, while minimizing arbitrage rebates to the extent permissible by rebate exceptions. Negative arbitrage is to be avoided. The System Post Issuance Compliance Coordinator works in conjunction with the University Post-Issuance Compliance Coordinators to establish operating procedures with respect to arbitrage investment limitations and rebate requirements on behalf of the System. The System Post Issuance Compliance Coordinator shall oversee compliance with such operating procedures to avoid any investment or rebate compliance errors.

5. Expenditures and Assets The System Post Issuance Compliance Coordinator will coordinate compliance for this area and in consultation with the University Post Issuance Compliance Officers, may designate individuals on each/any campus to assist in achieving and maintaining compliance.

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6. Allocation of Proceeds Allocation of bond proceeds to capital projects is an important element in the ongoing compliance effort. The default methodology used for making an allocation of bond proceeds is “specific tracing,” meaning the proceeds are deemed to be spent on the expenditures to which they are traceable. The System Post Issuance Compliance Coordinator will prepare or have prepared an allocation certificate to memorialize the expenditure of bond proceeds (and other funding sources, if any) on relevant projects. The Compliance Coordinator reviews and updates fields as necessary on a regular basis, until the bond proceeds are fully allocated and all projects have been fully funded. Typically, CSUS allocates equity or taxable debt to the portion of a project used for private use (if any exists), to minimize the private use of the bond, as documented in the allocation certificate.

7. Expenditure Policy Applicable uses of System debt are documented in the System Finance Policy. Debt issuances must be approved by the Board of Governors.

8. Private Use a. Definition: Private Use (PU) means the use of bond-financed property in a trade or business by any person or entity other than the borrower, a tax exempt affiliate of the borrower or a state or local government entity or by the borrower for an unrelated trade or business. PU is measured separately for each outstanding bond issue and is limited to 10% for qualified bonds. b. Because bond issuance costs are considered to be PU, the allowable PU of bond-financed projects is reduced by the proceeds spent on issuance costs capped at 2%. c. Examples of Private Use: • Leases of university property to non-university entities • Noncompliant management or service contracts • Noncompliant sponsored research agreements • Unrelated trade or business use by borrower • Naming rights arrangements with a private user Note: According to IRS regulations, activities are only PU if they are carried out in tax-exempt bond financed space. d. Monitoring Private Use i. It is the System’s general policy that private use in tax-exempt financed facilities should be avoided. It is also the System’s current practice to finance capital projects with a layer of non-tax-exempt debt including

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System funds or taxable debt where private use is expected to occur. ii. At the time of tax-exempt bond issuance, the CSUS Post Issuance Compliance Coordinator with the assistance of University Compliance Coordinators will assess and quantify any potential PU in capital projects and confirm that the equity contributions to the respective projects will be sufficient to cover such PU. The System Post Issuance Compliance Coordinator, in consultation with the University Post Issuance Compliance Coordinators, will establish a process for identifying and tracking existing PU for purposed of calculating, at least annually, the percentage of PU being conducted in bond financed projects per project and per bond issue. iii. The University Post Issuance Compliance Coordinators, in consultation with the System Post Issuance Compliance Coordinator will each establish a process for their campus to review and approve/reject proposals that would result in PU being carried on in a tax-exempt bond financed space. Full information must be gathered prior to such decision-making, including the details and location of the (proposed) activity, the financing structures of the facilities in question, and information about other potential PU in those facilities. PU activity may be approved by the System Post Issuance Compliance Coordinator only if: • The capital project has enough equity (i.e., non-tax- exempt debt) to allow the potential PU to be fully allocable to equity. • Any allocation of potential PU to equity must not use up a majority of the equity funding available for that project. e. Remedial Action Each University department using tax-exempt debt is responsible for notifying the University Post Issuance Compliance Coordinator, or designee, before there is a change in use of the project or facility financed with tax-exempt debt. In the event such a change in use may result in excessive PU for a bond issue, the System may avail itself of rules under Treasury Regulation section 1.141-12 which provide for “remedial action” by redemption or defeasance of nonqualified bonds. Remedial action, when properly taken, preserves the tax exemption of interest on the bonds. Failure to meet remedial action may result in significant penalties which will be borne by the University or department. In limited circumstances, remedial action may be taken by applying disposition proceeds to other qualifying capital expenditures. The System will seek the advice of borrower and/or bond counsel in the event remedial action may be required. To the extent a potential

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violation of PU rules arises that cannot be corrected through remedial action, or in the event of a potential arbitrage violation, the System will seek the advice of borrower and/or bond counsel concerning its alternatives, which may include approaching the Internal Revenue Service under the voluntary closing agreement program (VCAP).

10 | Page 201

Policy and Procedures Manual

SUBJECT: BUDGET AND FINANCE

Policy 202: CSUS Board Debt Management Policy

Board Debt Management Policy:

The purpose of this section is to establishColorado State University System’s Debt Management Policy (“Debt Policy”) establishes guidelines for the prudent use and management of debt for the CSUSSystem, including the recognition of the System’s consolidated revenue pledge.

Debt financing is a source of funding that allows the Colorado State University System to finance the cost of capital improvements for one of its component institutions over a period of time typically related to the useful life of the asset. This is a financially prudent practice for certain types of capital investments when executed within appropriate loan covenant limitations and at favorable interest rates.

Debt financing may also be beneficial where the System invests in capital assets which further the mission of its institutions and provide revenue or cost savings which are greater than the cost of borrowing. Because debt capacity is limited, it is imperative that borrowings are for projects that directly support the vision, mission, and values of the CSUS and its strategic goals and objectives.

Procedures:

A. Affordability  When issuing debt, the System will seek the lowest-cost source of funding available commensurate with the most favorable financial terms, conditions, and

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risks that are consistent with the System’s capital structure and financing requirements.

 External borrowings will be coordinated to the extent practicable so that multiple project needs can be accomplished in a single borrowing, thereby reducing

issuance costs.  The System will consider credit enhancement, such as bond insurance or, letters of credit or the Colorado Higher Education Intercept Program, when it is cost beneficial to do so and/or results in more favorable loan covenants.  All debt-financed projects must have an identified revenue stream (or cost reduction) and must be supported by an achievable plan of finance that includes servicing the debt and meeting any new or increased operating costs.  The cost of debt-financed capital acquisitions should be charged to the future users of the capital asset over the period the debt is outstanding and the asset's useful life (as legally permitted). The System may, however, issue debt for a term shorter than the asset’s useful life.  All debt payments will be provided for in the annual operating budget.

B. Debt Structure  Given the oftentimes strategic and financial value of variable rate debt, limited issuance is permitted if market conditions are appropriate, a variable rate debt management plan is in place, and such issuance furthers the System’s strategic goals.  In general, fixed-rate debt will be utilized. However, the System may utilize variable-rate debt when appropriate for a particular financing plan, taking into consideration bond market conditions, the System’s liquidity position, and risks associated with variable rate date (including interest rate risk, remarketing risk and liquidity renewal risk)  The financing mode, term, and financing instrument must be appropriate for the project(s) financed. Given the System’s credit consolidation efforts, the master revenue bond resolution is intended to be the primary debt issuance vehicle, however, certificates of participation, commercial paper, and separately secured bonds may be issued if the Board deems such issuance to be in the System’s best interest.  The use of capitalized interest will only be considered for projects whose identified funding stream will not be able to immediately generate sufficient revenues to repay debt. In those instances, interest will not be capitalized for a period in excess of the construction period plus three months.  The System’s debt capacity will be determined from time to time, giving considerationrecognizing it is a subjective measure. Consideration should be given to bond rating agency inputagencies and related industry guidelines, with; however the goal of maintaining the then current credit ratings from eachSystem

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does not manage its debt portfolio to achieve a specific rating agency. The System recognizes that strategy and mission must be the primary drivers of its use of debt.  The System shall evaluate, on a case by case basis, whether to utilize the Colorado Higher Education Intercept Program (or any successor programs) to provide credit enhancement to the System’s transaction.

D.C. Risk Management  The System will consider refinancing outstanding debt only when savings for the refinancing, measured on a net present value basis, are positive, or when the refinancing accomplishes other strategic objectives including budgetary relief or reducing or eliminating future risks.  The System will not default on its bond covenants and obligations. Meeting debt service obligations will be prioritized over competing budgetary needs of the System and institutions, including the use of reallocations and reductions when required.  Financial covenants and restrictions will be minimized to the extent possible, taking into consideration the long-term capital requirements of the System.  The System’s cash flow procedures will be managed to ensure the timely payment of debt service.  Compliance with debt reporting and financial covenants will be closely monitored and adhered to by the Chief Financial Officer with validation by external auditors. The System utilizes a post-issuance securities compliance firm to file and disseminate information provided by the System in connection with its continuing disclosure agreements to investors. The System may engage or appoint alternative agents to assist in satisfying its continuing disclosure requirements.  The following risks should be assessed before issuing debt: o Change in Public/Private Use • The change in the public/private use of a project that is funded by tax-exempt funds could potentially cause a debt issue to become taxable. o Default Risk • The risk that revenues for debt service payments are not all received by the due date. o Liquidity Risk • The risk that the System will not be able to meet its current and future cash flow and collateral needs, both expected and unexpected, without materially affecting its daily operations or overall financial condition. o Interest Rate Risk

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For variable rate debt, the risk that interest rates will rise, on a sustained basis, above levels that would have been set if the issue had been fixed.

E.D. Financing Procedures  The Chief Financial Officer of the System will have responsibility for any debt financing and issuances of debt and will coordinate all related activities with the campuses.  The Office of General Counsel has responsibility for all legal actions relating to any debt financing, including reviewing all documents and legal opinions, and determining the role of external legal counsel.  The campus responsible for a proposed project will provide the Chief Financial Officer of the System the following information: o Total project cost. o For auxiliary supported projects: • At a minimum a 10 -year pro-forma showing all available revenues, expenses, and net revenues available to pay debt service. • A coverage ratio calculation within the Pro-forma applied to each project whereby revenues for the project exceed expenses and debt payments by a minimum of twenty -five (1.25) percent. Campuses may propose a lower debt coverage ratio but at a minimum must meet a ten percent threshold (1.10) on average. o Project time schedule; o A statement or certification to the CFO that a program plan was developed and approved by the board as required by Colorado Commission on Higher Education or the Capital Development Committee. o Evidence of necessary approvals from the board, Colorado Commission on Higher Education, Capital Development Committee and when necessary the Joint Budget Committee before bonds may be issued for a project. o Other information, as requested.  The System CFO in conjunction with the campuses will work with selected underwriters, financial advisors, bond counsel, and General Counsel to develop all necessary financial resolutions, policies, procedures, projections, and documents needed to successfully finance a project before the sale of bonds.  The CFO of the System in consultation with the campuses, General Counsel, and the Chancellor will determine the best timeline and process for the Board to approve all necessary financing documents.  The Office of General Counsel will assure that all legal opinions, bond documents, disclosure documents and any other required legal materials are satisfactory.

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F.E. Procedures and Approvals for RefinancingsRefinancing  The Chief Financial Officer will review any refinancing plan presented by the System’s underwriting team and/or its financial advisor and the assumptions upon which the plan is based, and determine whether it is in the best interests of the System;  The Chief Financial Officer will work with departments affected by the refinancing to determine the best method for allocating savings.

G.F. Procedures and Approvals for All Financings  The Chief Financial Officer will assure that any issuance of debt is structured cost effectively and in the best interest of the System, taking into consideration the Debt Management Policy;  The Office of General Counsel will assure that all legal opinions, bond documents, disclosure documents and any other required legal materials are satisfactory;  The Chief Financial Officer , in consultation with the Office of General Counsel, will assure that all materials necessary for the Board to complete its review of the financing are provided to the Board in a timely manner; and

 o The Board, upon a positive recommendation of the Finance Committee, will approve the bond purchase agreement and other financing documents.

H.G. Updates and Revisions The System’s Chief Financial Officer shall review this Debt Management Policy at least annually every three years and recommend any changes necessary to ensure that it continues to meet System objectives. The policy should also be reviewed as soon as practicable in the event of the significant changes in/of financial personnel or following any material changes to the System’s credit rating.

I.H. Post Issuance Compliance The Board of Governors of the Colorado State University System (CSUS) borrows through the issuance of tax-exempt bonds to finance acquisition and construction of, and improvements to, many of its facilities and other capital projects. Investors in tax- exempt bonds (which include bonds, Variable Rate Demand Notes and tax-exempt commercial paper notes) are willing to accept a lower coupon rate because interest earned on tax- exempt bonds is exempt from taxation. This exemption translates into a lower cost of capital for the University. Various requirements must be satisfied, however, for tax- exempt bonds to maintain their tax-exempt status.

This section explains the guidelines and practices that the CSUS follows to remain in compliance with rules and regulations relating to tax-exempt bonds. Compliance is

206 required both upon the issuance of the bonds and during the post-issuance phase which extends through and beyond the life of the bonds. An exception to these Guidelines may only be authorized by the System Post Issuance Compliance Coordinator, in consultation with the relevant University Post Issuance Compliance Coordinator and/or bond counsel based on a determination that such exception will not jeopardize the tax-exempt status of the applicable bond issue.

1. Roles, Responsibilities and Procedures o System Post Issuance Compliance Coordinator: The System Post Issuance Compliance Coordinator has primary responsibility on behalf of the System for post-issuance compliance efforts. The System Post Issuance Compliance Coordinator oversees the compliance program and monitors and ensures that compliance tasks are performed in an appropriate and timely manner. The CSUS Chief Financial OfficerTreasurer is designated as the System Post Issuance Compliance Coordinator. o University Post Issuance Compliance Coordinator: The University Post Issuance Compliance Coordinators have primary responsibility on behalf of Colorado State University or Colorado State University Pueblo, as the case may be, for post-issuance compliance efforts for their campus. The University Post Issuance Compliance Coordinators oversee various aspects of the compliance program for their campus as they monitor and ensure that campus based compliance tasks are performed in an appropriate and timely manner. The University Post Issuance Compliance Coordinators will perform such tasks and provide such information as the System Post Issuance Compliance Coordinator may request in support of the over-arching System post-issuance compliance efforts. The University Post Issuance Compliance OfficerCoordinator is to be designated by the President of each institution. o School and Department Responsibilities: University or department senior finance officers have certain responsibilities with respect to capital projects and facilities financed with tax-exempt bonds. These individuals play a critical role in ensuring that their departments are in compliance with the Guidelines, and they are responsible for the accuracy and completeness of the information provided to their University Post Issuance Compliance Coordinator regarding the utilization of space. In addition, they are responsible for ensuring that their departments retain records for the appropriate timeframe. The Senior Finance Officers are designated by the respective University Post Issuance Compliance OfficerCoordinator.

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2. Recordkeeping The System seeks to comply with regulatory record retention requirements. Good record retention and documentation provide evidence of compliance and is the foundation of a successful bond compliance program. The System The System Office will also retain all records relating to debt transactions for as long as the debt is outstanding, plus three years after the final redemption date of the transaction.

3. Generally Accepted Accounting Principles (GAAP) The System and institutions will comply with the standard accounting practices adopted by the Financial Accounting Standards Board and the Governmental Accounting Standards Board when applicable. The System

Post Issuance Compliance Coordinator shall establish operating procedures with respect to the maintenance of relevant records and shall oversee compliance with such operating procedures.

3.4. Arbitrage Compliance Arbitrage arises when proceeds from a bond issue are invested and the yield on the investments is greater than the yield on the bonds. Negative arbitrage arises when the investment yield is less than the yield on the bonds. The Internal Revenue Code contains two separate sets of requirements relating to arbitrage, yield restriction and rebate, which must be satisfied to ensure that the bonds do not lose tax-exempt status. o Yield Restriction The arbitrage rules generally prohibit proceeds of a bond issue from being invested in a yield in excess of the bond yield. o Rebate Rebate-even if an exception to yield restriction applies, if arbitrage is earned on an issue, the excess earnings must be remitted to the U.S. Treasury Department unless an exception to rebate applies.

The System’s objective is to invest bond proceeds to the bond yield or higher, while minimizing arbitrage rebates to the extent permissible by rebate exceptions. Negative arbitrage is to be avoided. The System Post Issuance Compliance Coordinator works in conjunction with the University Post-Issuance Compliance Coordinators to establish operating procedures with respect to arbitrage investment limitations and rebate requirements on behalf of the System. The System Post Issuance Compliance OfficerCoordinator shall oversee compliance with such operating procedures to avoid any investment or rebate compliance errors.

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4.5. Expenditures and Assets The System Post Issuance Compliance Coordinator will coordinate compliance for this area and in consultation with the University Post Issuance Compliance Officers, may designate individuals on each/any campus to assist in achieving and maintaining compliance.

o Allocation of Proceeds Allocation of bond proceeds to capital projects is an important element in the ongoing compliance effort. The default methodology used for making an allocation of bond proceeds is “specific tracing,” meaning the proceeds are deemed to be spent on the expenditures to which they are traceable. The System Post Issuance Compliance Coordinator will prepare or have prepared an allocation certificate to memorialize the expenditure of bond proceeds (and other funding sources, if any) on relevant projects. The Compliance Coordinator reviews and updates fields as necessary on a regular basis, until the bond proceeds are fully allocated and all projects have been fully funded.

Typically, CSUS allocates equity or taxable debt to the portion of a project used for private use (if any exists), to minimize the private use of the bond, as documented in the allocation certificate.

o Expenditure Policy Applicable uses of System debt are documented in the System Finance Policy. Debt issuances must be approved by the Board of Governors.

5.6. Private Use Definition: Private Use (PU) means the use of bond-financed property in a trade or business by any person or entity other than the borrower, a tax exempt affiliate of the borrower or a state or local government entity or by the borrower for an unrelated trade or business. PU is measured separately for each outstanding bond issue and is limited to 510% for qualified bonds. Because bond issuance costs are considered to be PU, the allowable PU of bond-financed projects is reduced by the proceeds spent on issuance costs capped at 2%.

o Examples of Private Use: 1. Leases of university property to non-university entities

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2. Noncompliant management or service contracts 3. Noncompliant sponsored research agreements 4. Unrelated trade or business use by borrower 5. Naming rights arrangements with a private user Note: According to IRS regulations, activities are only PU if they are carried out in tax-exempt bond financed space.

o Monitoring Private Use It is the System’s general policy that private use in tax-exempt financed facilities should be avoided. It is also the System’s current practice to finance capital projects with a layer of non-tax- exempt debt including System funds or taxable debt where private use is expected to occur. At the time of tax-exempt bond issuance, the CSUS Post Issuance Compliance Coordinator with the assistance of University Compliance Coordinators will assess and quantify any potential PU in capital projects, and confirm that the equity contributions to the respective projects will be sufficient to cover such PU. The System Post Issuance Compliance Coordinator in consultation with the University Post Issuance Compliance Coordinators will establish a process for identifying and tracking existing PU for purposed of calculating, at least annually, the percentage of PU being conducted in bond financed projects per project and per bond issue. The University Post Issuance Compliance Coordinators, in consultation with the System Post Issuance Compliance Coordinator will each establish a process for their campus to review and approve/reject proposals that would result in PU being carried on in a tax-exempt bond financed space. Full information must be gathered prior to such decision-making, including the details and location of the (proposed) activity, the financing structures of the facilities in question, and information about other potential PU in those facilities. PU activity may be approved by the System Post Issuance Compliance Coordinator only if:

1. The capital project has enough equity (i.e., non tax- exempt debt) to allow the potential PU to be fully allocable to equity. 2. Any allocation of potential PU to equity must not use up a majority of the equity funding available for that project.

o Remedial Action

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Each University department using tax-exempt debt is responsible for notifying the University Post Issuance Compliance Coordinator, or designee, before there is a change in use of the project or facility

financed with tax-exempt debt. In the event such a change in use may result in excessive PU for a bond issue, the System may avail itself of rules under Treasury Regulation section 1.141-12 which provide for “remedial action” by redemption or defeasance of nonqualified bonds. Remedial action, when properly taken, preserves the tax exemption of interest on the bonds. Failure to meet remedial action may result in significant penalties which will be borne by the University or department.

In limited circumstances, remedial action may be taken by applying disposition proceeds to other qualifying capital expenditures.

The System will seek the advice of borrower and/or bond counsel in the event remedial action may be required. To the extent a potential violation of PU rules arises that cannot be corrected through remedial action, or in the event of a potential arbitrage violation, the System will seek the advice of borrower and/or bond counsel concerning its alternatives, which may include approaching the Internal Revenue Service under the voluntary closing agreement program (VCAP).

211 Item 8 Short-term Interim Financing Update From Eleventh Supplemental Financing Resolution 212 Authorization

• The Eleventh Supplemental Resolution authorized an aggregate principal amount not to exceed $100,000,000 for purposes of financing Improvement Projects

• $49.1 million was used in Series 2016, leaving $50.9 million authorization available for short-term financing 213 214 Due Diligence

• Cornell – Harper Watters and Carolann Saggasi • ASU – Morgan Olson • Utah – Arnie Combe

• North Slope – Steph Chichester • Wells Fargo – Sally Bednar • Kutak Rock – Fred Marienthal • Discussed future needs with CSU Advancement and Housing 215 Future Needs/Possibilities

• Deferred Maintenance Projects • Housing/Dining Projects • National Western COP bridge financing • Utilize in Treasury Program 216 217 218 CP Implementation

• Primarily non-taxable but have authorization for taxable if needed • Proceed with self-liquidity CP program • Establish on-going CP program procedures • Establish on-going self-liquidity procedures • Select Dealer (Underwriter) • Offering memorandum – only 10 pages • Secure short-term rating 219

Questions 220

Section 4

Academic and Student Affairs Committee

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BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY SYSTEM ACADEMIC AND STUDENT AFFAIRS COMMITTEE MEETING AGENDA February 2, 2017

Committee Chair: Jane Robbe Rhodes Assigned Staff: Dr. Rick Miranda, Chief Academic Officer

I. New Degree Programs

Colorado State University  Master of Addiction Counseling  New Graduate Certificates o Adult Basic Education o Sustainable Military Lands Management

Colorado State University-Global Campus  None

Colorado State University-Pueblo  Bachelor of Science in Wildlife and Natural Resources

II. Miscellaneous Items

Colorado State University  Sabbatical Summaries for 2015-2016  Faculty Manual Section D.3.6, Section D.5.1, and Appendix 1  Faculty Manual Section I.11

Colorado State University-Global Campus  None

Colorado State University-Pueblo  Faculty Handbook Changes  Sabbatical Summaries

III. Campus Reports

Colorado State University (all three campuses)  Accreditation Overview

222 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

New Degree Program: Master of Addiction Counseling, Plan C (M.A.C.)

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the request from the College of

Natural Sciences, to establish a new Master of Addiction Counseling (Plan C), in

the Department of Psychology. If approved, this degree will be effective Fall

Semester 2017.

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President.

The Plan C Master of Addiction Counseling is designed to provide students the education needed to become a Licensed Addiction Counselor. With this degree and licensure, graduates will be able to enter the workforce as treatment providers for those struggling with substance use and substance use disorders. The Master’s Degree is structured as one year of course work and one year of internships to satisfy state requirements for certification and licensure. This program is seen as a continuation of the Addictions Counseling Concentration in the B.S. in Psychology program. That concentration leads to Level 1 Certification, where the Plan C Master’s Degree will lead to the highest level of certification in the field of addictions treatment.

Potential graduate program applicants seeking a terminal master’s degree from CSU in counseling will be adequately prepared for a career in Addiction Counseling with the proposed Master’s Degree, which qualifies them for the relevant license. There is currently a shortage of properly trained individuals in the field of addictions treatment, so by launching this program Colorado State University will be able to train individuals with a terminal master’s degree who are ready to fill this demand.

CSU-Fort Collins – New Degree Program - Master of Addiction Counseling (Plan C)

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PROGRAM CHANGE REQUEST NEW PROGRAM PROPOSAL Date Submitted: 10/19/16 3:38 pm VIEWING: MASTER OF ADDICTION COUNSELING, PLAN C (M.A.C.)

LAST EDIT: 11/11/16 12:01 PM Changes proposed by: 829899596

APPROVAL PATH 1. 10/19/16 3:59 pm, Edward Delosh (Ed.Delosh): Approved for 1876 Representative to College Curriculum Committee 2. 10/20/16 1:23 am, Don Rojas (don.rojas): Approved for 1876 Chair 3. 10/20/16 10:39 am, Andrea Russo (andrea.russo): Approved for 1876 Chair 4. 10/20/16 10:46 am, Edward Delosh (Ed.Delosh): Approved for NS Curriculum Committee Chair 5. 10/20/16 10:47 am, Edward Delosh (Ed.Delosh): Approved for NS Curriculum Committee Chair 6. 10/20/16 7:34 pm, Simon Tavener (tavener): Approved for NS Associate Dean 7. 10/21/16 10:07 am, Carrie Middleton (carrie.middleton): Approved for CoSRGE prep 8. 11/03/16 2:13 pm, William Sanford (William.Sanford): Approved for CoSRGE Chair 9. 11/04/16 3:13 pm, Andrea Russo (andrea.russo): Approved for RO Banner - prep 10. 11/11/16 2:47 pm, Shelly Ellerby (shelly.ellerby): Approved for Provost - CPP Check 11. Provost 12. UCC Prep 13. University Curriculum Committee Chair 14. Curriculum Liaison Specialist - hold for FC approval 15. RO Banner - approved 16. Program Code 17. CIP Code 18. Provost - Board of Governors 19. Provost - CCHE 20. HOLD for Future Catalog

Name Title Phone E-mail Bradley Conner Tenure Track Faculty 970-491-6197 [email protected]

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Program available to students: Fall 2017

College: Natural Sciences

Department/Unit: 1876 - Psychology

Academic Level: Graduate

Program Type: Degree

Degree Type: MS - Master of Science (this will be changed to “MAC – Master of Addition Counseling” once the degree is approved)

Program Title: Master of Addiction Counseling, Plan C (M.A.C.)

Program Description The Plan C Masters in Addiction Counseling is designed to provide students the education needed to become a Licensed Addiction Counselor. With this degree and licensure, graduates will be able to enter the workforce as treatment providers for those struggling with substance use and substance use disorders. The Masters Degree is structured as one year of course work and one year of internship in order to satisfy state requirements for certification and licensure. Additionally, this program is seen as a continuation of the recently launched Concentration in Certified Addiction Counseling in the Psychology Department. That concentration leads to Level 1 Certification, whereas the Plan C Masters Degree would lead to the highest level of certification in the field of addictions treatment. There is currently a shortage of properly trained individuals in the field of addictions treatment, so by launching this program Colorado State University will be able to train individuals with a terminal Masters degree who are ready to fill this need. Program Catalog Copy The Plan C Masters in Addiction Counseling is designed to provide students the education needed to become a Licensed Addiction Counselor. With this degree and licensure, graduates will be able to enter the workforce as treatment providers for those struggling with substance use and substance use disorders. The Masters Degree is structured as one year of course work and one year of internship in order to satisfy state requirements for certification and licensure. Additionally, this program is seen as a continuation of the recently launched Concentration in Certified Addiction Counseling in the Psychology Department. Offered as: Main Campus Face-to-Face

Justification for Request CSU’s Department of Psychology focuses on graduate degrees across a number of specialty areas, including Counseling Psychology, which is integral to the identity and mission of the department. The department currently offers a Ph.D. in Counseling Psychology. The Counseling Program is annually recognized as one of the top programs in the country. Students enrolled in the Doctoral Program receive a Master’s degree in pursuit of their Doctorate, but the program is designed to teach skills and knowledge across four to five years of academic study. Additionally, the Ph.D. in Counseling Psychology follows the Scientist-Practitioner model, providing primary education and training in becoming a research scientist seeking a career in academia. Thus, while many potential applicants desire a terminal Master’s degree from CSU, they would not be accepted into the Doctoral Program if their stated goal was a Master’s degree, nor would they be adequately prepared for a career in Addiction Counseling with a Master’s degree earned as a requirement towards the doctorate focused on training scientist-practitioners destined for a career in academia. Program Level Learning Objectives The Program will prepare students to work as Certified Addiction Counselor (CAC) III’s in the State of Colorado or as Licensed Addiction Counselors (LAC), either in private practice or addiction treatment centers nationwide. Typical responsibilities for CAC-III and LAC Counselors include: 225

 Providing treatment for substance use disorders and behavioral addictions through either individual or group therapy;  Providing training and supervision for CAC-I and CAC-II counselors;  Providing community outreach, informing the public of what treatment options are available and what the impacts of addictive disorders are on public health; All courses are designed to embody emerging principles in Addiction Counseling as set forth by the field and by the Office of Behavioral Health and the Department of Regulatory Agencies, both part of the Colorado Department of Human Services. Courses will provide not only critical core knowledge, but will map onto the coursework and training experiences required by OBH and DORA so that graduates will be eligible to sit for licensure exams upon completion of the Master’s in Addiction Counseling Program at Colorado State University (CSU). Program Requirements Effective Fall 2017 First Year

Fall Total Credits

PSY 612 Introduction to Addiction Counseling 3

PSY 675 Ethics and Professional Psychology Practice 3

PSY 724 Motivational Interviewing 3

PSY 726 Neuropharmacology of Addiction 3

Total Credits 12

Spring

PSY 613 Advanced Addiction Counseling 3

PSY 720 Psychopathology 3

PSY 776 Business and Practice of Addiction Counseling 3

PSY 793 Clinical Supervision of Addiction Counseling 3

Total Credits 12

Second Year

Fall

PSY 786E Advanced Practicum: Clinical 9

Total Credits 9

Spring

PSY 786E Advanced Practicum: Clinical 9

Total Credits 9

Program Total Credits: 42 A minimum of 42 credits are required to complete this program.

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Additional Information The Office of Behavioral Health has published guidelines and a handbook for Certified Addiction Counselors (see https://drive.google.com/file/d/0B1- _ZOVijYoDOVF6RjBweXJuRDVaWm5NcnBOclVnQkxZQ3ow/view). The guidelines serve as the basis for the specific learning outcomes assessed by students completing the proposed program. They are as follows:

Certified and licensed addiction counselors possess a body of knowledge, skills, training and work experience in the treatment of addictive behaviors that distinguishes the addiction counseling profession from other health care professions. In order to practice as an Addiction Counselor in the State of Colorado, students must obtain certification as follows:

Certified Addiction Counselor Level 1 (CAC I), defined as entry-level certification, is achieved by completing required coursework from approved trainers (currently available through the Certified Addiction Counseling Concentration offered to undergraduate psychology majors), passing a state-level exam, and completing 1000 hours of supervised work in the field (this certification is not part of the Masters in Addiction Counseling Program, instead it serves as a pre-requisite for admission to the program).

Certified Addiction Counselor Level II (CAC II) is defined as a counselor who may conduct addiction treatment services independently and may perform the complete range of duties associated with addiction treatment, with the exception of clinical supervision. This level of certification is obtained by completing required coursework and an additional 2000 hours of clinical practice, along with passing a state-level exam. Students completing the Masters in Addiction Counseling Program at CSU will complete all of the required coursework for this certification as part of completing the program.

Certified Addiction Counselor Level III (CAC III) has the authority to practice independently and assume clinical supervision duties. This level of certification is obtained by completing required coursework and completing an additional 2000 hours of supervised clinical work. Students completing the Masters in Addiction Counseling Program at CSU will complete all of the required coursework for this certification as part of completing the program.

Licensed Addiction Counselor (LAC) is a credentialing level that requires a clinical Master’s degree, proof of passing a national exam, and completion of all requirements for a CAC III. Students completing the Masters in Addiction Counseling Program at CSU will complete all of the required coursework necessary in an applicable program to be eligible to become a LAC. Affected Departments Attach File(s) Addictions Counseling Cover Page.docx Attach File(s) Masters in Addiction Counseling Phase 1 Proposal.docx Attach File(s) Masters in Addiction Counseling Phase 2 Proposal.doc Attach File(s) CoSFP Approval - MAC Plan C.doc Attach File(s) psm-addictcounsel_150416n.pdf Attach File(s) UCC minutes150911.pdf 227 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

Graduate Certificates

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the Graduate Certificates in Adult Basic

Education and Sustainable Military Lands Management.

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President

In order to qualify for Title IV funding, graduate certificates awarded by Colorado State University must demonstrate approval by the Board of Governors, the Colorado Department of Higher Education and the Higher Learning Commission. The certificates listed here for which we are seeking approval have received approval from the University Curriculum Committee and the Faculty Council.

CSU-Fort Collins – Graduate Certificates

228 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

Graduate Certificates:

Warner College of Natural Resources Sustainable Military Lands Management – 9 credits

College of Health and Human Sciences Adult Basic Education – 9 credits

CSU-Fort Collins – Graduate Certificates

229

NEW PROGRAM PROPOSAL ABEF-CT: GRADUATE CERTIFICATE IN ADULT BASIC EDUCATION

Effective Catalog: 2017-2018

Program available to students: Fall 2017

College: Health and Human Sciences

Department/Unit: 1588 - School of Education

Academic Level: Graduate

Program Type: Certificate

Program Code: ABEF-CT

Program Title: Graduate Certificate in Adult Basic Education

Program Description: The graduate certificate in Adult Basic Education provides students with foundational knowledge in adult basic education and family literacy. Program Catalog Copy: The Adult Basic Education certificate is offered for practitioners and administrators who do not need the Adult Basic Education Authorization (ABEA) from the state of Colorado. This may include those from other states. The four courses in the Certificate are the same as those authorized by the Colorado Department of Education. The Graduate Certificate in Adult Basic Education is earned through documented evidence and demonstrated competency in foundational knowledge in adult basic education and family literacy. Part of state-wide agreement: No 230

Offered as: Main Campus Face-to-Face Main Campus Face-to-Face and Online Online/DCE Offered by: Main Campus

Justification for Request This certificate allows opportunities for students who are interested in adult basic education and family literacy and do not need the Adult Basic Education Authorization from the Colorado Department of Education. Completing the certificate allows all interested students to have this credential appear on their transcripts, which may be preparation for employment as ABE instructors and administrators throughout the nation. Program Level Learning Objectives • To prepare professional adult learning facilitators to work in a variety of learning environments within a culturally diverse global context; • To assist candidates in becoming critically reflective practitioners capable of conducting and communicating workplace research as it relates to and informs the field of adult learning; • To encourage individual and professional growth through exposure to other colleagues and collaborative and project-based learning environments Purpose and Objectives of the Certificate The 12 credit hour graduate certificate allows students to develop praxis in area of adult basic education to prepare them for success in their respective roles in the field.

Upon completion of the certificate, students will have: 1. explored and developed their philosophy of learning 2. appraised the foundations and the current situation of adult education as a field of study and practice 3. addressed learner diversity (cultural, economic, educational) and analyzed how technology, employment, family, and community related activities are integrated into instruction 4. created a learning environment to demonstrate techniques that encourage open, active, and positive collaboration enabling learners to retain information in an effort to increase learning transfer 5. effectively utilized the tools needed to successfully provide English learning to Speakers of Other Languages in competency based programs with life skills content. Target Audiences and Documented Demand Target audiences include professionals working or seeking work in an adult basic education program and master or doctorate students enrolled in any graduate-level degree program interested in pursuing foundational knowledge of adult basic education and family literacy. According to the Bureau of Labor Statistics, the need for ABE instructors is projected to grow 9% from 2012-2022 due to continued immigration and workforce requirements. 231

Courses are offered such that the certificate may be completed in how many terms? 2

Admissions Criteria Students must fulfill the following requirements to be admitted into the certificate program: (a) completed application; (b) completion of a baccalaureate degree; and (c) evidence in a purpose statement of work or future interest in adult basic education. . Exclusions: Students who have not met the admissions criteria

Inclusions: Open to all that meet the admissions criteria

Location and Contact Information for Certificate Office Name: Adult Education & Training, School of Education, CHHS Building Name: Education, Room 230 Phone: 720-280-9423

Program Requirements:

Additional coursework may be required due to prerequisites.

Course List

Code Title Credits

Required Courses

EDAE 520 Adult Education 3

EDAE 530 Adult Basic Education 3

EDAE 540 Teach English as Second Lang—Adult Learners 3

EDAE 620 Processes and Methods 3

Program Total Credits: 12

*This certificate may have courses in common with other graduate certificates. A student may earn more than one certificate, but a given course may be counted only in one certificate.

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NEW PROGRAM PROPOSAL SMMF-DD-CT: Graduate Certificate in Sustainable Military Lands Management Effective Catalog: 2017-2018

Program available to students: Fall 2017

College: Warner College of Natural Resources

Department/Unit: 1490 – Center for Environmental Management of Military Lands

Academic Level: Graduate

Program Type: Certificate

Program Code: SMMF-DD-CT

Program Title: Graduate Certificate in Sustainable Military Lands Management

Program Description: The graduate certificate in Sustainable Military Lands Management is an online program designed to enhance the skills of or current practitioners of military land management and to prepare new professionals interested in this field. Course work integrates understanding of U.S. military lands with a range of land management practices, particular those related to natural and cultural resources.

Program Catalog Copy: The Graduate Certificate program in Sustainable Military Lands Management at Colorado State University is designed to enhance the knowledge and skills of current practitioners and managers, as well as new professionals interested in applying their education and background to the management of military lands. This knowledge and skill sets are transferable to professionals in a wide array of federal and state land management agencies. This online program is the first and only program of its kind in the U.S. 233

Part of state-wide agreement: No

Offered as: Online/DCE

Offered by: CSU Online

Justification for Request The certificate program, as originally conceived and implemented, has been a " non-transcripted" distance-learning program offered through CSU Online. This certificate is being discontinued; therefore, CEMML would like to hereby petition that the certificate program, as currently configured, be evaluated by the WCNR College Curriculum Committee and the University Curriculum Committee to confer on it as a CSU "transcripted" certificate program.

Program Level Learning Objectives The Program Level Learning Objectives of this certificate program are as follows: • Gain an overview of military lands in the United States in historical, geographical, and environmental contexts. • Learn the general practices and theory of land management, with particular attention to the full range and natural and cultural resources that may be impacted by long-term military training and testing activities. • Study the ecological principles of military training and testing areas and the impacts of disturbances caused by these activities. • Explore cultural resources laws, policies, management, and preservation as they apply to military lands. • Prepare to lead stewardship-related matters on military lands. • Apply your knowledge and skills to a wide array of federal, state, and foreign land management agencies. After completing this certificate, you will have an enhanced knowledge base of military land management and understanding of the cultural and ecological significance of sustaining these lands. This certificate can lead to unique job opportunities and career advancement as a military land management professional.

Purpose and Objectives of the Certificate The online certificate program in Sustainable Military Lands Management (SMLM) at Colorado State University is designed to enhance the knowledge and skills of current practitioners and managers, as well as new professionals interested in applying their education and background to the management of military lands. This knowledge and skill sets are transferable to professionals in a wide array of federal and state land management agencies. This online graduate level program is the first and only program of its kind in the U.S. Target Audiences and Documented Demand The demand for highly-skilled and educated environmental professionals in federal lands management, particularly on the 30 million acres of land in the U.S. managed by the Armed Forces to train military units and test military equipment, is rapidly increasing. Much of the senior federal work force in these disciplines will leave federal service in the next decade. The business and non-profit sectors are assuming an increased role in the management of military installations and their associated lands. The complexity of managing and sustaining these landscapes, within mission, community, and 234

environmental contexts, requires new knowledge of ecological concepts and new technical and communication skills in a wide range of natural and cultural resources disciplines. The SMLM certificate program has been offered thus far through CSU ONLINE over a period of seven years. Enrollments have fluctuated from semester to semester and from year to year, but overall the program has been moderately successful, with over 60 students completing the certificate since its inception.

Courses are offered such that the certificate may be completed in how many terms? 3

Admissions Criteria This certificate requires a completed bachelor's degree. Given the online nature of this certificate, students will need to be organized and self-motivated to successfully complete this certificate. There are no specific exclusions. . Exclusions: N/A

Inclusions: N/A

Location and Contact Information for Certificate Office Name: CEMML/1490 Building Name: Vocational Education Building, Room 007 Phone: 970-491-3741

Program Requirements:

Additional coursework may be required due to prerequisites.

NR 550 Sustainable Military Lands Management 3

Select 2 courses from the following: 6

NR 551 Cultural Resource Management on Military Lands

NR 552 Ecology of Military Lands

NR 553 DoD Sustainable Building and Infrastructure

Program Total Credits: 9

*This certificate may have courses in common with other graduate certificates. A student may earn more than one certificate, but a given course may be counted only in one certificate.

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Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

New Degree Program: BS in Wildlife and Natural Resources.

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the request from the College of Science and

Mathematics to establish a new BS in Wildlife and Natural Resources. If approved, this degree

will be effective in fall 2017.

EXPLANATION:

Presented by Rick Kreminski, Provost and Executive Vice President for Academic Affairs, CSU-Pueblo.

The proposed Bachelor of Science degree in Wildlife and Natural Resources will produce students who have gained complementary perspectives, acquired through technical scientific and laboratory course experiences as well as resources management course experiences. The program emphasizes an understanding of fish and wildlife ecology and management with practical skills obtained during laboratory and field work. Students will be capable of receiving Professional Certifications from both The Wildlife Society (TWS) and American Fisheries Society (AFS). These certifications, and the degree in general, allow students to move into careers with federal and state government agencies, tribal departments, and conservation organizations to pursue careers in wildlife and natural resources or continue with graduate study. Students will benefit from close proximity to different public lands and agencies, allowing for access to local “living laboratory” experiences, along with experiences with environmental firms and non-profit entities.

1. Brief Overview of Proposed Program

 Name of Major/Program: Wildlife and Natural Resources  Degree type: BS  Recommended CIP code: 03.0101 Natural Resources/Conservation, General  Department/School: Department of Biology  College: College of Science and Mathematics  Expected number of students enrolled in program five years post-implementation: 80

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 1 of 13 236

The Wildlife and Natural Resources degree emphasizes an understanding in fish and wildlife ecology and management with practical skills obtained ruing laboratory and field exercises. Graduates are prepared for positions with state and federal agencies, tribal departments, and conservation organizations or higher academic degrees. Carefully supervised career planning is provided to all students. Course work in this program provides students with foundational work in the sciences as well as complementary perspectives in resource management. The program offers Terrestrial and Aquatic emphasis areas, with curriculum for each meeting professional certification requirements of The Wildlife Society (TWS) and the American Fisheries Society (AFS). These certifications allow students to earn credentials to move into careers with government agencies such as the Bureau of Land Management (BLM), the U.S. Fish and Wildlife Service (USFWS), the National Park Service (NPS), the U.S. Forest Service (USFS), and the Colorado Department of Parks and Wildlife; tribal departments; and non-profit organizations who work with land, wildlife, and conservation issues. Students will benefit from close proximity to different public lands and agencies, allowing for access to local “living laboratory” experiences, along with experiences with environmental firms and non- profit entities. Students are strongly encouraged to complete an internship or temporary employment in a natural resources discipline prior to graduation. The department has strong ties with local contacts from the Colorado Department of Parks and Wildlife, the BLM and others to facilitate these opportunities.

The new major with two emphases (Aquatic and Terrestrial) requires the creation of five new courses and the addition of one new faculty member. The new major would build on many of the Department of Biology’s existing curriculum, and use many of the same support courses that students majoring in Biology are already required to take, including courses in Chemistry, Physics, Math, and Geology.

Conservative projected enrollment is 80 new students enrolled in this major after 4 years. The demand for this new major is strong, based on:  Interviews and surveys of current CSU-Pueblo students pursuing degrees in Biology  Interviews with local high school guidance counselors in Pueblo County  Interviews with current USFS and USFWS employees and recruiters  Bureau of Labor Statistics  Interviews with CSU emeritus Faculty

Data are presented in section 3 below.

The Department of Biology is well-positioned to deliver this new program:  Our location in southern Colorado with access to different public lands and agencies allows our student’s access to a “living” laboratory not available in most university settings. For example, within 30 miles of campus, students have access to managed lands and internship opportunities at regional offices of the Pike/San Isabel National Forest and Grassland, Bureau of Land Management, Pueblo State Park, and the Colorado Parks and Wildlife Fish Hatchery.  A Wildlife and Natural Resources program at a Hispanic Serving Institution such as CSU- Pueblo would help to address the nationwide demand for diversity in employment within the Fish & Wildlife career track, a major priority for federal agencies like the U.S. Fish & Wildlife Service.

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 2 of 13 237

 The U.S. Department of Education-funded PROPEL grant recently completed (2016) provided funds to create a new museum facility on the first floor of the Life Science building. This new museum space provides the infrastructure to support this new major.  The Department of Biology already offers most of the courses needed for this major, and only requires the creation of five new courses (one has already been developed and taught under the special topics designation) to offer a degree program that would satisfy both The Wildlife Society (TWS) and the American Fisheries Society (AFS) Professional Certification.

This program could begin in fall 2017, given that most of the coursework exists and being offered already, specifically the lower division courses for new freshman. Below is a tentative 5 year timeline:

Year 1 (2016-2017) – Hire a doctorally-qualified Visiting Assistant Professor, recruitment/enrollment of new students, course development of WNAR 302 Principles of Wildlife Management and WNAR 303 Natural Resource Policy and Administration. (This is well underway; Dr. Jim Satterfield is leading this activity.) Year 2 (2017-2018) – First offering of WNAR 302 and WNAR 303. Course development of WNAR 304 Human Dimensions in Natural Resource Management, WNAR 401/L Fisheries Science and WNAR 402 Management of Endangered Species. Year 3 (2018-2019) – First offerings of WNAR 304, WNAR 401/L and WNAR 402. First internal review of program enrollment. Graduation of first majors (transfers and existing CSU-Pueblo students) Year 4 (2019-2020) – Graduation of first freshman cohort of majors Year 5 (2020-2021) – Second internal evaluation and full program review of the new major. If sustainable, hire Tenure Track faculty member to replace Dr. Jim Satterfield.

2. Mission Appropriateness

Colorado State University-Pueblo is a regional, comprehensive university with the following Mission and Vision Statements:

Mission Statement Colorado State University-Pueblo’s mission stresses its distinctiveness and central commitments: Colorado State University-Pueblo is committed to excellence, setting the standard for regional comprehensive universities in teaching, research and service by providing leadership and access for its region while maintaining its commitment to diversity.

Vision Statement Colorado State University-Pueblo will enhance its reputation as a premier comprehensive regional university that offers a wide range of undergraduate degrees as well as specialized graduate degrees. As a federally designated Hispanic Serving Institution, CSU-Pueblo is committed to maintaining university accessibility which reflects southern Colorado’s culturally and ethnically diverse student body, including first generation students. We will do so by offering excellent academics, affordable education, transformative opportunities, and supportive student life. CSU-Pueblo will be distinguished by the integration of the liberal arts and sciences with professional preparations as well as an emphasis on experiential education that reflects skills and competencies needed in a global society.

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 3 of 13 238

As seen above, CSU-Pueblo is committed to providing access to students of southern Colorado which reflects southern Colorado’s culturally and ethnically diverse student body, including first generation students. Offering a Wildlife and Natural Resources program at CSU-Pueblo will fill a need for students whose economic and social circumstances require that they remain in the southern Colorado area.

CSU-Pueblo adopted a new Strategic Plan in 2015 that is designed to build upon our strengths, seize opportunities, and address internal and external challenges over the next 5 years. The plan is driven by our mission as a regional, comprehensive university with a student-centered focus and an enduring commitment to diversity. The plan consists of 4 major goals, including 1) excellent academics, 2) affordable education, 3) transformative opportunities, and 4) supportive student life. Our proposed new degree ensures a commitment to excellence, our faculty are research active, and the program will directly meet and address the following points in the 2015-2020 University Strategic Plan:

Goal 1: Excellent Academics

1.1. Objective One - Attract motivated students capable of academic success: The new Wildlife and Natural Resources major will attract students to CSU-Pueblo who may not have come to a four-year school, may not have enrolled in our existing Biology program, and are “place bound” in southern Colorado.

1.3. Objective Three – Provide sustainable, high quality, relevant academic programs that prepare students for professional and academic success: The new Wildlife and Resource Management program will lead students to The Wildlife Society (TWS) Professional Certification and/or the American Fisheries Society (AFS ) Professional Certification. These certifications are important and allow students to earn credentials to move seamlessly into careers with government agencies, environmental consulting firms, or non-profits.

Goal 3: Transformative Opportunities

3.2. Objective Two - Enhance ethnic, racial, and cultural diversity across the campus: A Wildlife and Natural Resources program at a Hispanic-Serving Institution like CSU-Pueblo would help to address the nationwide demand for diversity in employment within the Fish & Wildlife career track, a major priority for federal agencies like the U.S. Fish & Wildlife Service.

3.3. Objective Three - Integrate experiential education throughout students’ curricular and co-curricular activities: Many, if not all, of the courses in the “core” for the proposed major would easily fit our current EE designation, where the experiences of students in a learning- by-doing approach that includes reflection and application will enhance student learning.

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 4 of 13 239

Goal 4: Supportive Student Life

4.2. Objective Two - Provide opportunities for networking, leadership, and mentoring opportunities for students both on and off-campus: Our location in southern Colorado with access to different public lands and agencies allows our students to access to “living” laboratories not available in most university settings. For example, within 30 miles of campus, students have access to managed lands and internship opportunities at regional offices of the Pike/San Isabel National Forest and Grassland, Bureau of Land Management, Pueblo State Park, a private working ranch (of over 50,000 acres) with much unique flora and fauna, and the Colorado Parks and Wildlife Fish Hatchery.

3. Rationale for the Wildlife and Natural Resources Major

Given the input from the people and agencies below, we conservatively project between 15-20 new freshman students enrolled in this major every year, starting in Fall 2017. We also project that 80 new students will be enrolled in this major after 4 years. Demand for this new major is strong, based on the following:

Current Students

Current students in seven different courses (BIOL 100 Principles of Biology, BIOL 181College Biology I, BIOL 182 College Biology II, BIOL 202 Zoology, BIOL 352 Ecology and Evolutionary Biology, BIOL 443 Limnology, and BIOL 483 Mammology) were surveyed. We asked four questions:

Question 1: How interested are you in this major? Question 2: Would you have been interested in this major when you first considered/came to CSU- Pueblo? Question 3: What are your career aspirations? Question 4: If you choose this major would you be more interested in the aquatic or terrestrial option?

We used a simple likert scale consisting of Very Interested (VI), Somewhat Interested (SI), Uncertain (U), Unlikely (UL), or Very Unlikely (VUL) for questions 1 and 2.

Our results are as follows:

Question Very Interested or Uncertain Unlikely or Very Totals Somewhat Interested Unlikely 1 95 22 30 147 2 96 21 30 147

Question Aquatic Terrestrial Unsure Total 4 66 51 30 147

The class that showed the most interest (% of VI/SI) was BIOL 443 Limnology (90%); BIOL 483 Mammology (81%), BIOL 202 Zoology (76%); BIOL 182 College Biology II (56%); BIOL 181 CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 5 of 13 240

College Biology I (42%); and Principles of Biology BIOL 100 (41%). Although it had the smallest percentage of students Very Interested or Somewhat Interested, BIOL 100 is populated by non- majors. Thus there is broad interest in this major even outside normal Biology majors.

The department is offering two WANR courses (Principles of Wildlife Management and Natural Resource Policy and Administration) for the first time as 491 Special Topics courses in spring 2017. Even with essentially no recruitment/advertising, these courses have 14 and 10 students enrolled; this indicates strong interest and demand from current students.

Local High School Guidance Counselors

Guidance counselors at the six major high schools in Pueblo County (East, Central, Centennial, South, Pueblo County, and Pueblo West) replied favorably to this new offering, and mentioned that they all had multiple students who would find this program very attractive. Below are sample quotes from our correspondence.

“Several students express a definite interest in such a major every year.” Pat Laughlin, Counselor, East H.S., Pueblo “I have a number of students are interested every year in various natural resource careers - game warden, biologist, fish culturists. A program at CSU-P would be more accessible to my students.” Michelle Juno, South H.S., Pueblo “I meet with students every year who would be interested in this new major. I believe that you could do well recruiting in various AP and Biology classes at my school.” Tonja Odell, Centennial H.S., Pueblo

Current USFS and USFWS employees and recruiters Both Graham Smith (Diversity Officer, USFWS) and Michael Welker (USFS) are very supportive of program, and both believe it would “help address nationwide demand for diversity in employment of fish & wildlife areas,” a major priority for the federal agencies.

Bureau of Labor Statistics

Job Title Predicted growth 2014-2024 Conservation Scientists and Foresters 7% (as fast as average) Environmental Science and 9% (faster than Protection Technicians average)

Texas A&M Department of Wildlife and Fisheries Sciences Job Board: Snapshot of Two Week Job Postings (3/1/16-3/14/16)

Employment Type Number of Positions Internships 51 Temporary/Seasonal Positions 166 Full Time/Permanent Positions 101 Graduate Positions 22 Total 330 CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 6 of 13 241

Retention of Existing and Struggling Biology Majors Biology majors are retained at CSU-Pueblo at near the University average (65.9% first-time/full-time 2012, data from last Biology program review). We believe that this new major can increase retention, by now retaining students who would switch from Biology to the new Wildlife major, given the reduction in Chemistry and Physics support course requirements.

4. CSU System and State Positioning

Within Colorado, there are three other Wildlife Programs in addition to CSU-Pueblo’s existing Wildlife option currently offered in the Department of Biology.

1. Colorado State University – Pueblo BS Biology, Environmental Biosciences Emphasis, Pre-Wildlife Option

2. Adams State BS Biology, Wildlife Management Emphasis

3. Western State BS Biology, Wildlife Emphasis

4. Colorado State University BS Fish, Wildlife, and Conservation Biology

While three other Colorado colleges and universities offer some sort of wildlife/natural resources curricula, CSU has traditionally been the state’s flagship for natural resources management. A key difference between the CSU program and the proposed CSU-Pueblo program is that the CSU program is housed in a separate department (Department of Fish, Wildlife & Conservation Biology/College of Forestry and Natural Resources), while our program will be housed in the Department of Biology. This will influence our curriculum; the CSU-Pueblo major will be rooted in the basic sciences, while still meeting professional certification requirements. Furthermore, both our average class sizes and our student/instructor ratio will be lower. Perhaps the most significant difference in the programs will be in the diversity of our students, which should soon lead to a nationwide demand for our students in a profession that has historically struggled with employing underrepresented minorities.

Proposed Enrollments

We expect 80 students enrolled in program after five years post-implementation. Below is a breakdown for this estimate. All six high school guidance counselors at the large high schools in Pueblo County (East, Central, Centennial, South, County, and Pueblo West) indicated numerous students at each of their institutions each year express strong interest in this career path and would be good potential students. Given this input, we conservatively estimate 15 to 20 freshman majors including these Pueblo county high school students and others from southern Colorado. While some of these students may have come to CSU-Pueblo as biology majors, we expect that a proportion would indeed be new students attracted to our new major.

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Another source of students in this major will be existing Biology majors. It is expected that we will see students migrate immediately to this major, especially students who have declared the Environmental Biosciences emphasis. Currently, approximately 10% of our majors are Environmental Bioscience students, i.e. approximately 30. This number fluctuates as students shift from emphasis to emphasis inside of Biology.

Finally, this new major may serve as an important retention avenue for students who start as Biology majors but switch their interests. Biology majors are retained at CSU-Pueblo at near the University average (65.9% first-time/full-time 2012, data from last Biology program review). This new major may be able to retain students who would switch from Biology to the new Wildlife major, given the reduction in Chemistry and Physics support course requirements.

5. Special Undergraduate Admissions standards

None

6. Curriculum and Program Outcomes

The Department of Biology in the College of Science and Mathematics (CSM) requests approval of a new baccalaureate degree program titled Bachelor of Science in Wildlife and Natural Resources effective fall 2017. This degree would replace the Environmental Biosciences emphasis under the current Bachelor of Science in Biology. The Wildlife and Natural Resources program at CSU-Pueblo will allow students to pursue The Wildlife Society (TWS) Professional Certification and/or the American Fisheries Society (AFS) Professional Certification. It would become one of two BS Wildlife education programs in Colorado.

Proposed Wildlife and Natural Resource Program Goals  To provide students with the necessary background to successfully pursue graduate study towards a professional career in wildlife and natural resources.  To prepare students upon graduation to enter field positions in government or private industry.  To supply students with the necessary coursework to obtain professional certification as associate fishery or wildlife biologists.

Proposed Wildlife and Natural Resource Expected Student Outcomes  Students will know the taxonomy, ecology and natural history of flora and fauna in southern Colorado and the desert southwest.  Students will know the principles and concepts of fish and wildlife science and how they are used to make informed decisions on difficult management decisions.  Students will use contemporary tools and techniques for studying fish and wildlife, habitat, and ecosystem processes.

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 Students will be familiar with laws, policies, regulations and administrative processes that dictate how wildlife and natural resources are held in trust for the public.  Students will develop communication and interpersonal skills to enhance their working relations with co-workers, other wildlife professionals, the public and non-governmental organizations, landowners, hunters and anglers, and other natural resources interests.  Students will develop skills in reading and interpreting the scientific literature and in presenting a synthesis of it accurately in oral and written form.  Students will demonstrate critical thinking and problem solving skills using experimental design and the scientific process.

Curriculum B.S. Wildlife and Natural Resources Major

American Fisheries Society (AFS ) Professional Certification - *Designates new courses Aquatic Emphasis Biology Courses (43 credits) *Designates new courses BIOL 171 – First Year Seminar (1 credit) Biology Courses (38 credits) BIOL 181/181L – College Biology I/Lab (4 credits) BIOL 171 – First Year Seminar (1 credit) BIOL 182/182L – College Biology II/Lab (4 credits) BIOL 181/181L – College Biology I/Lab (4 credits) BIOL 201/201L – Botany/Lab (4 credits) BIOL 182/182L – College Biology II/Lab (4 credits) BIOL 202/202L – Zoology/Lab (4 credits) BIOL 201/201L – Botany/Lab (4 credits) BIOL 321/L - Comp Vertebrate Anatomy (5 credits) BIOL 202/202L – Zoology/Lab (4 credits) BIOL 352 – Evolutionary Biology and Ecology (3 credits) BIOL 350 -- Mendelian and Pop Genetics (2 credits) BIOL 443/L – Limnology/Lab OR BIOL 352 – Evolutionary Biology and Ecology (3 credits) BIOL 453 – Ecology /Lab (4 credits) BIOL 441/L – Freshwater Invert Ecology/Lab (4 credits) BIOL 485/L – Plant Taxonomy (4 credits) BIOL 443L – Limnology/Lab (4 credits) BIOL 486 – Field Botany (3 credits) BIOL 453 – Ecology/Lab (4 credits) BIOL 493 – Senior Seminar (1 credit) BIOL 479/L – Ichthyology (3 credits) At least 2 of the following 3 courses: BIOL 493 – Senior Seminar (1 credit) BIOL 483/L – Mammalogy/Lab (3 credits) BIOL 484/L – Ornithology/Lab (3 credits) Wildlife and Natural Resource Courses (9 credits) BIOL 481/L – Entomology/Lab (3 credits) WNAR 401/L - Fisheries Science* (3 credits)

WNAR 303 - Natural Resources Policy & Administration* (3 credits) Wildlife and Natural Resource Courses (12 credits) WNAR 304 - Human Dimensions in Natural Resource Management* WNAR 302 – Principles of Wildlife Management* (3 credits) (3 credits) WNAR 303 - Natural Resources Policy & Administration* (3 credits) Advisor-Approved Upper Division Electives (6 credits) WNAR 304 - Human Dimensions in Natural Resource Management* (3 credits) Support Courses (27 credits) Management of Endangered Species* (3 credits) CHEM 121/L – General Chemistry/Lab (5 credits) CHEM 211/L – Introduction to Organic Chemistry (4 credits) Support Courses (26 credits) PHYS 201/L -- Principles of Physics (4 credits) CHEM 121/L – General Chemistry/Lab (5 credits) GEOL 101/L -- Earth Science (4 credits) CHEM 211/L – Principles of Organic Chemistry (4 credits) MATH 156 – Introduction to Statistics (3 credits) PHYS 201/L Principles of Physics (4 credits) MATH 221 -- Applied Calculus (4 credits) MATH 156 – Introduction to Statistics (3 credits) COMR 221 – Interpersonal Communication (3 credits) MATH 221 - Applied Calculus (4 credits) General Education Courses (24 credits) MATH 356 – Statistics for Scientists and Eng (3 credits) ENG 101 – English Composition I (3 credits) COMR 221 – Interpersonal Communication (3 credits) ENG 102 – English Composition II (3 credits)

COMR 103 – Speaking and Listening (3 credits) General Education Courses (24 credits) History -- 1 course (3 credits) ENG 101 – English Composition I (3 credits) Humanities – 2 courses (6 credits) ENG 102 – English Composition II (3 credits) Social Sciences – 2 courses (6 credits) COMR 103 – Speaking and Listening (3 credits) General Electives (16 credits) History – 1 course (3 credits) Humanities – 2 courses (6 credits) Total Credit Hours - 120 credits Social Sciences – 2 courses (6 credits) General Electives (15 credits) Total Credit Hours - 120 Credits The Wildlife Society (TWS) Professional Certification - Terrestrial Emphasis CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 9 of 13 244

Proposed New Courses:

WNAR 302 - Principles of Wildlife Management - 3(3-0) - History of conservation and natural resource use; ecological principles, and social and economic limits of conservation; principles and practices of wildlife management; role of research in management. Prerequisite: BIOL 202/L

WNAR 303 - Natural Resources Policy & Administration - 3(3-0) - Principles and concepts of key legal frameworks within which professionals work in conserving natural resources. Examines state and federal policies and laws related to allocation and conservation of natural resources. Specific topics include public involvement processes, agency structure and management, supervisory principles. Prerequisite: None

WNAR 304 - Human Dimensions in Natural Resource Management - 3(3-0) - Role of human dimensions in natural resources. Topics include attitude/opinion survey methodology, consensus building, leadership, problem-solving, and public relations. Prerequisite: None

WNAR 401 Fisheries Science/Lab - 3(2-1) - Principles and concepts of studying structure and dynamics of fish populations; methods of estimating abundance, mortality, sustainable harvest levels and extinction risk; introduction to collection techniques and models for population analysis. Prerequisite: MATH 221, BIOL 479/L

WNAR 402 - Management of Endangered Species - 3(3-0) - Biological underpinnings and political realities of endangered species management, including legal issues, recovery teams, citizen rights, extinction, rarity, proactive management, captive propagation, reintroduction, listed species in Colorado. Prerequisite: BIOL 302

7A Potential Collaborations CSU-System

Our greatest potential collaboration is with graduate programs housed within the Warner College of Natural Resources at CSU. Many career options within Wildlife and Natural Resources require a graduate degree. Our undergraduate program could provide many new graduate students to CSU pursuing either a MS or PhD in Ecosystem Science and Sustainability (ESS), Fish, Wildlife and Conservation Biology (FWCB), Forest and Rangeland Stewardship (FRS), and Human Dimension of Natural Resources (HDNR).

Further, the Warner College of Natural Resources at CSU houses the following Research centers and institutes:  Center for Environmental Management of Military Lands (CEMML)  Center for Protected Area Management (CPAM)  Colorado Cooperative Fish and Wildlife Research Unit (COOP)  Colorado Forest Restoration Institute (CFRI)  Colorado Natural Heritage Program (CNHP)  Colorado State Forest Service (CSFS)  Environmental Learning Center (ELC)  Larval Fish Laboratory (LFL)

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CSU-Pueblo staff participated in the first CSU System Academic Collaboration meeting held in Denver on September 28, 2016. During this meeting Biology Department faculty met with Faculty from the CSU School of Natural Resources to consider system wide academic collaborations. Several draft initiatives were developed as a result of this meeting (Wildlife biology 3+1 program, shared hybrid courses, CSU FWCB Key Learning community collaboration, transcampus first year program experience at the Mountain campus, shared field experience courses, FWCB higher education teaching pathway/pipeline).

7B Potential Collaborations Non-CSU-System

Our location in southern Colorado with access to different public lands and agencies allows our students access to a “living” laboratory not available in most university settings. For example, within 30 miles of campus, students have access to managed lands and internship opportunities at regional offices of the Pike/San Isabel National Forest and Grassland, Bureau of Land Management, Pueblo State Park, the Colorado Parks and Wildlife Fish Hatchery, and many environmental firms and non- profits.

8. Faculty resources

The new major (with two emphases, Aquatic and Terrestrial) only requires the creation of five new courses and the addition of one new full-time faculty member. The new major would build on many of the Department of Biology’s existing curriculum, and use many of the same support courses majors in Biology already are required to take, including courses in Chemistry, Physics, Math, and Geology.

One new full-time Faculty

Dr. Jim Satterfield (Year 1 – Year 4) Jim Satterfield holds degrees in both wildlife and fisheries management. He has been an adjunct faculty member at Colorado State University, University of Montana, Montana State University, Denver University, and Visiting Assistant Professor at CSU-Pueblo the last two academic years. He is a certified fisheries scientist with the American Fisheries Society and a fellow of the National Conservation Leadership Institute. Jim has over 30 years of experience working for Colorado Parks and Wildlife and Montana Fish, Wildlife & Parks. He was awarded the Colorado Governor's Award for his work in training and recruiting minority youth to work in natural resources. New TT faculty in Wildlife and Natural Resources (Starting Year 5)

One additional Graduate TA position With additional students, there will be upward pressure on enrollment in entry-level Biology courses, specifically BIOL 181 Labs and BIOL 182 Labs. An additional GTA position will be required to teach anticipated new sections of these labs.

9. Library resources

No special library resources beyond those currently available are necessary. CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 11 of 13 246

10. Facilities, equipment, and technology

This new major will build off of existing curriculum The new major (with two emphases, Aquatic and Terrestrial) only requires the creation of five new courses and the addition of one new full-time faculty member. The new major would build on many of the Department of Biology’s existing curriculum and existing faculty, and use many of the same support courses majors in Biology already are required to take, including courses in Chemistry, Physics, Math, and Geology.

This new major will build off the infrastructure changes already created by the U.S. Department of Education PROPEL grant The PROPEL grant (which ended October 2016) has already funded the renovation of the first floor of the Life Sciences building into a new museum and field studies space, including new teaching space, room for the display of our collections, and specimen preparation space. By Fall 2016, we have already created the teaching infrastructure to support this new major.

Supplies In order to support this new major, the biological specimens located in our museum will need an overhaul. We currently have fantastic relationships around the state to help with the collection of new material. We are requesting funds (supplies) to help maintain and expand the biological collections housed at CSU-Pueblo.

Recruitment We have also requested limited funding to support targeted recruiting (mailings, school visits, etc.) of new freshman students during the first three years of this new program.

11. Potential Collaborations

See above (7A and 7B)

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12. Budget

Wildlife and Natural Resources Major Budget Year 1 Year 2 Year 3 Year 4 Year 5 Totals 2016 2017 2018 2019 2020 Personnel

Name (last, first) role Satterfield, James Visiting Assistant salary $45,000 $46,350 $47,741 $49,173 $188,263 FB $13,595 $14,002 $14,422 $14,855 $56,874 TT Assistant TBA Professor salary $53,000 $53,000 FB $16,011 $16,011 Graduate Student GTA tuition rebate $1,112 $1,112 $1,112 $1,112 $1,112 $5,560 stipend $10,000 $10,000 $10,000 $10,000 $10,000 $50,000 FB $350 $350 $350 $350 $350 $1,750 Adjunct ($2,000 Adjunct (Physics) per credit) salary (6 credits) $12,000 $12,000 $12,000 $12,000 $12,000 $60,000 Adjunct (Chemistry) adjunct salary (6 credits) $12,000 $12,000 $12,000 $12,000 $12,000 $60,000

subtotals $94,057 $95,814 $97,625 $99,490 $104,473 $491,459 Supplies/Equipment/Remodel Jon Boat w trailer $20,000 $20,000 supplies $5,000 $5,000 $10,000 subtotals $25,000 $5,000 $30,000 Other recruitment costs $2,000 $2,000 $2,000 $6,000 subtotals $2,000 $2,000 $2,000 $6,000

Totals $121,057 $102,814 $99,625 $99,490 $104,473 $527,459

Approved Denied Board Secretary

Date

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CSU: Sabbatical Leave Summaries 2015-2016

Presented by: Rick Miranda, Provost and Executive Vice President

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249 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item

Sabbatical Leave Policy

The sabbatical leave policy for Colorado State University faculty is addressed in Section F.3.4 in the Academic Faculty and Administrative Professional Manual. CSU offers academic faculty members the possibility of sabbatical leaves at any time after six years have elapsed since the faculty member's initial appointment or most recent sabbatical leave.

The faculty members seeking sabbatical leave shall follow the procedures established by his/her academic unit. College deans or the Dean of Libraries shall forward the names of faculty members recommended for sabbatical leave along with a detailed sabbatical plan to the Provost/Executive Vice President. The detailed plan shall specify how the sabbatical will result in the faculty member's professional growth, enhance the institution's reputation and the students' educational experience at the institution, and increase the overall level of knowledge in the faculty member's area of expertise. Faculty members cannot be absent for more than two academic semesters in cases of faculty on nine month appointments, and no more than one calendar year for faculty on 12 month appointments.

College of Agricultural Sciences

Bill Bauerle – Soil and Crop Sciences

Dr. Bauerle was in-residence during his sabbatical leave and focused attention on key issues enhancing our understanding of climate change as it relates to day length and predicted forest evolution in western landscapes. In particular, Dr. Bauerle collaborated with Canadian colleagues to join new data collection with existing literature to develop forest physiology model input parameters, generate a predictive algorithm, join the algorithm to an existing land model and generate forecasts, and then assess the new model predictions against known relationships. As of January 2016, a meta-analysis data set of key plant physiology model input parameters was used to develop an algorithm that characterizes the seasonal photosynthetic activity response for photoperiod-temperature interactions. The algorithm was vetted with high temporal resolution measurements of photosynthetic gas exchange and growth.

By linking realistic photosynthetic physiology with mechanistic models, Dr. Bauerle was able to provide valuable insight into the role of these parameters on large-scale carbon and water fluxes and confront challenges in predicting the effect of climate change on diverse plant functional types. Refining the parameterization of the Community Land Model allows for improved accuracy in the predictions of future vegetation responses to climate change. The knowledge he gained has expanded his program and resulted in additional national and international collaborations (e.g. a visiting scientist from Canada is currently working in his lab as a result of the sabbatical).

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Dr. Bauerle’s sabbatical research is timely and relevant to the expanding literature associated with forest response to climate change, especially the ability of scientists to evaluate impacts. The work he is completing aligns well with research initiatives across the Colorado State University system and with our partners. The associated scholarship will be a catalyst for future work by Dr. Bauerle and his CSU research team.

Mark Enns – Animal Sciences

Dr. Enns’ sabbatical leave was spent working in New Zealand with AbacusBio, Ltd, and Focus Genetics, Ltd (a New Zealand government-owned enterprise). The long-standing relationship of the two organizations wherein the economics of production are used in concert with genetic evaluation, selection, and breeding of seed stock to improve commercial beef, sheep, and deer production profitability, and the quantity and quality of red meat for the consumer; provided a unique opportunity for Dr. Enns to explore new research directions and to improve teaching and course content through the application of the knowledge and experience gained during this sabbatical.

Benefits of this sabbatical leave include:  The development of collaborative research relationships that will lead to future research and funding proposals.  Time to reflect and converse with other professionals regarding the discipline and future directions.  Ability to meet new individuals and market the activities of Animal Breeding and Genetics at CSU which has improved relationships with New Zealand scientists and created potential new clients.  Gleaned new abilities to mentor and promote study abroad experiences for undergraduate students.  Delivery of new approaches to improving rates of genetic progress in animal adaptability, fertility, and longevity to Colorado and U.S. cattle producers.  Gained insight, knowledge, and materials to enhance the courses he currently teaches and to expand student experiences with grass-based production systems.  A reinvigorated research program resulting from the opportunity for undistracted focus on a problem with results impacting current research and providing new direction for future research and grant proposals.

Gregory Graff – Agricultural and Resource Economics

Dr. Graff was employed 50% time as a visiting professor at Chalmers Tekniska Hogskola (Chalmers University of Technology) in Goteborg (Gothenburg), Sweden in their Institute of Teknikens Ekonomie och Organisation (College of Economics and Management of Technology), which includes the internationally acclaimed Master’s program of the Chalmers School of

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Entrepreneurship (CSE). The invitation from Chalmers was based upon his longstanding working relationship with colleagues there, as well as several other Swedish colleagues at the nearby University of Gothenburg, particularly their Center for Intellectual Property (CIP) and the Sahlgrenska School of Innovation and Entrepreneurship, at the Sahlgrenska Academy, the medical school of the University of Gothenburg. His engagement while in Sweden consisted of research, graduate student advising, guest teaching, and some academic service.

In all, the sabbatical year was deeply beneficial, both professionally and personally. The three main take-home benefits include:

 Opportunity to reflect and develop intellectual insights on the economic agency of innovation and the economic production and exchange of new technologies. These new perspectives will continue to inform multiple research efforts going forward.  An expanded perspective on the regional versus global nature of academic technology- based entrepreneurship, with distinctive systems in Europe and the U.S.  Programmatic insights into the ethos and the operations of the Chalmers School of Entrepreneurship and opportunity to make a thorough introduction of the program and leadership to a range of colleagues at CSU, creating the potential for introducing some fundamental academic innovations at CSU.

Jay Ham – Soil and Crop Sciences

During his sabbatical, Dr. Ham was hosted at the CSU Foothills Campus by Dr. Jeff Collett, head of the Atmospheric Science Department. He also worked closely with CSU Engineering Professor Dr. Tom Sale and his students at the nearby Engineering Research Center (ERC). Collaboration with these departments will enhance Dr. Ham’s research and teaching efforts, and improve his ability to pursue extramural grant funding. His primary research area is agricultural meteorology and air/water quality; thus working with these groups is a boon for his program in the College of Agricultural Sciences and will promote interdisciplinary research. During his visit, Dr. Ham focused on measurement of air emissions from oil and gas operations in rural areas with Dr. Collett, and the detection of groundwater contamination with Dr. Sale. Relationships developed on sabbatical have jumpstarted several new research activities including a 2016 field project sponsored by Exxon Mobile with Dr. Sale. Dr. Ham is taking the lead on writing a proposal to NASA that involves three faculty members in Atmospheric Sciences. During sabbatical, Dr. Ham established a working relationship with a research team at EPA (Durham, NC) that is developing techniques for measuring air emissions from oil and gas operations. Many of these techniques have applications in agriculture (especially livestock) and rural communities. While on sabbatical, Dr. Ham attended and presented work at several national meetings and workshops.

Dr. Ham developed new skills that will enhance both his research and teaching. These include (1) python programming especially related to numerical methods and physical computing (i.e.,

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252 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item instrumentation development); (2) microcontrollers and electronics for building low-cost, open- source instrumentation; (3) 3D printing for sensor fabrication; (4) making printed circuit boards for custom instrumentation; (5) learning how to use IoT (internet of things) to measure parameters in air and soil; (6) learning to produce videos and screen casts to enhance teaching and research; and (7) learning to use WindTrax, a plume modeling program used for air quality research. In summary, the new professional relationships and skill sets developed during his sabbatical will benefit Dr. Ham’s productivity at CSU. He looks forward to sharing this new information in several courses and leveraging his new collaborative relationships to write more competitive research proposals.

College of Business

Thomas Dean – Management

Dr. Dean’s sabbatical goals were to 1) enhance his global research perspectives and collaborations; 2) advance his research agenda on economic institutions, property rights, and entrepreneurship; and 3) expand his knowledge and expertise with respect to entrepreneurship and environmental issues. Dr. Dean reports that he has achieved these goals and more. Among his primary activities during his sabbatical were serving as Scholar in Residence at Lehigh University; and visiting the University of Edinburgh, Imperial College London; and Chalmers School of Entrepreneurship. Many of these schools have top-ranked entrepreneurship programs and he was able to observe their programs, meet with faculty, build research collaborations, and give research presentations. He attended the Babson Entrepreneurship Research Conference in Norway, which is the leading gathering of entrepreneurship scholars outside of the Academy of Management.

Dr. Dean’s primary accomplishments were in research, as he spent most of the time working on research projects. This included the completion of some existing articles, as well as the start of new articles. He started work on three new articles on property rights and entrepreneurship, environmental entrepreneurship, and entrepreneurship pedagogy. One of these is targeted to the Journal of Business Venturing, the other to the Academy of Management Review, and the last to Academy of Management Learning and Education. The sabbatical time also allowed him to bring two articles to journal acceptance, one by Entrepreneurship, Theory, and Practice and the other by the Journal of Social Entrepreneurship, both leading journals in their fields. The visits to other Universities and the time to invigorate his research stream allowed him to promote CSU and his research, learn things directly relevant to his research stream, initiate new projects, and expand his knowledge of entrepreneurship and entrepreneurship programs.

John Elder – Finance and Real Estate

The objectives of Dr. Elder’s sabbatical were:  Reengage in writing, reviewing, and collaborating

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 Reengage at professional conferences and with journal editors

With regard to the first objective, during his sabbatical term, Dr. Elder reengaged in several research efforts. One research project was revised and updated with new empirical data and new methodology, and is near submission to an academic journal. He also investigated the application of relatively new and sophisticated empirical methodologies related to Bayesian econometrics and stochastic volatility. These methods will be useful in future projects and publications.

With regard to the second objective, he reengaged with journal editors. He completed reviews for numerous journals, including high level journals in the discipline. He attended two finance conferences – the Western Finance Association (July 2016) and the American Finance Association (January 2016). The Western Finance Association featured a session and several research papers that cited, and are strongly related to, his recent work on energy price volatility. Finally, Dr. Elder assumed a service commitment, serving as chair of a faculty search committee which included screening, interviewing, and hosting candidates for campus visits.

John Hoxmeier – Computer Information Systems

During his one semester sabbatical, Dr. Hoxmeier’s emphasis was on two professional areas: information systems within the beverage industry and information quality. He taught twice within the Beverage Business Institute (BBI) certificate program while on sabbatical. During this time, he became active in the research of systems used within the entire beverage value chain. The industry is highly fragmented and suffers from low integration and poor data quality. He developed an overall view of the various suppliers and systems used within the industry. He collected data from the participants in the BBI certificate program from many of the sectors in the industry. He has developed a series of key performance indicators (KPI) that reflect the needs of the industry. He also collected data from the professional MBA program on the perception of information quality within the firm. He intends to continue to develop these two areas. He developed a presentation and potential research stream within the beverage business information needs. He developed and managed the original proposal for the Beverage Business Institute, was active in its formation and strategy, and continues to stay active in its offerings and network.

This focus during the sabbatical has positively contributed to his classroom performance this spring. He was able to perform IT strategy, systems and application research within the beverage industry. Researching, evaluating, and building the software and systems required within the beverage industry was only one aspect of the process but an important one for his professional development. It gave him a chance to update his database skills and, as a result, improve his classroom effectiveness. This will benefit the students in the MBA program, the Beverage Business Institute, and the graduate CIS database curriculum. It will also contribute to his research stream in data and information quality.

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Kathleen Kelly – Marketing

While on sabbatical, Dr. Kelly collaborated with scholars from the Ohio State University and the University of New Mexico. The goal was to forge research relationships in order to write a significant grant proposal for external funding and to be able to focus on publication activity.

With Michael Slater, OSU, she submitted a proposal for a federal research grant (approximately $3.2M) with the National Institute on Drug Abuse. The aim of the study is to conduct a controlled experiment designed to reduce the quantity, frequency, and prevalence of marijuana use among middle-school youth in a state where marijuana use is legal and norms increasingly pro-use. The study proposed incorporates and tests the feasibility of smartphone technology, custom apps for iOS and Android, and text messaging to deliver drug prevention messages and resources proximate to time of adolescent behavioral decision-making.

Dr. Kelly spent much of her year at the University of New Mexico’s Center for Alcoholism, Substance Abuse and Addictions. She mentored junior faculty and doctoral students in psychology. Additionally, she spent a great deal of time continuing work as a Principal Investigator on a drug prevention campaign aimed at American Indian adolescents.

Lisa Kutcher – Accounting

During her sabbatical, Dr. Kutcher benefited through a dedicated amount of time to work on research which enhances her reputation, as well as the reputation of the Department of Accounting, the College of Business, and Colorado State University. She made significant progress on several research projects. Her research focuses on financial reporting disclosures of taxes in two specific areas: foreign earnings for multinational companies and stock-based compensation. Within the foreign earnings disclosures, she continues to expand her understanding of and the implications of the permanent reinvestment choice by managers. Within stock-based compensation, research findings are relevant to standard setters as they continue to evaluate and change the reporting requirements for stock-based compensation.

Students benefit from Dr. Kutcher’s research time through her increased knowledge and expertise in the area of accounting for income taxes, a topic that is covered in her graduate level class (ACT 614). In addition, she was able to develop new skills by becoming certified and participating in the Volunteer Income Tax Assistance (VITA) program that provides free income tax preparation services to lower income individuals. Now that she is certified, she will continue to work with the community and students during this important hands on experience.

Hong Miao – Finance and Real Estate

Dr. Miao completed four projects: 1) Weekly Options, 2) The Risk Shifting Project, 3) Mutual Fund Projects, and 4) Functional Analysis Model Project. The four projects generated four

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255 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item papers among which one paper has been published, one paper has been submitted, and two more are ready to submit. He also started four additional projects. The new projects generated one publication, one submission, one completed manuscript, and one paper under development. He also revised two working papers. Those two papers are close to submission. In summary, he worked on 10 papers at different stages in the five-month period and made significant progress on all of them. He also served as an ad hoc referee for five journals. Beyond academic research, he spent time with finance practitioners at a capital management company where he gained real world experience.

The sabbatical enhanced his research portfolio dramatically. Without the sabbatical, it is hard to imagine that he could work on 10 papers in 5 months. Now he has a rich and healthy research pipeline. The papers in the pipeline and possible extensions of the projects will generate high quality publications. The publications will enhance the reputation and recognition of CSU, and make him a more effective teacher in the classroom. His industry experience will enhance his teaching by connecting him further with practitioner issues and in learning more about student needs to be “industry ready”.

Troy Mumford – Management

Dr. Troy Mumford’s sabbatical created research, reputational, and teaching value for Colorado State University. First, the sabbatical enabled him to work closely with the Shingo Institute, a 26-year-old non-profit organizational dedicated to helping businesses to use lean manufacturing and lean management principles to drive organizational excellence. The sabbatical time was engaged with Shingo to continue the development, validation, and publication of a survey measure of organizational culture. The results of this work have already spawned two new manuscripts relating to how organizational culture and humble leadership drive employee engagement. One of these manuscripts is already accepted for presentation at an international conference. Second, the sabbatical allowed for progress to be made on two additional projects. One of these was the qualitative research into how this measure of organizational culture could be customized for the health-care industry. The other was finalizing progress made on an 18- nation, 3,000-respondent study that measures high-performance work practices around the world. This paper will soon be submitted for publication. Each of these activities involved significant relationship-building with researchers and practitioners around the world. This, combined with the ensuing presentations and publications, contribute to the pragmatic research reputation of Colorado State University.

Patricia Ryan – Finance and Real Estate

During her sabbatical, Dr. Ryan completed several research projects, has four papers in the journal review process, developed two additional research papers to be very close to the journal submission stage, presented research at two conferences, spent time at Iowa State University, and won a Best Paper Award at the Global Finance Conference. She has started six additional

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256 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item research projects that are in various stages of completion. Included in these are three business cases that will be submitted for publication in an academic journal and used in the capstone and graduate level finance courses. In summary, she has worked on eleven papers in the five-month period, making substantial progress on nine of them. Furthermore, this academic research is such that it will enhance the classroom experience for senior undergraduate and graduate level business students.

The sabbatical enhanced Dr. Ryan’s research portfolio significantly. Moving forward, she has the opportunity to publish in a wide variety of journals, from high level academic journals to widely read practitioner journals to classroom relevant case journals. Previously, her practitioner based research has been cited by the Wall Street Journal and other high level sources. She is hopeful this will follow again for this current work. All of these will enhance the reputation of Colorado State University, specifically for the Masters of Finance students, MBA students (both executive and early career) and senior undergraduate capstone case course.

Yolanda Sarason – Management

Dr. Sarason received a Fulbright grant to conduct research and develop curriculum in Hanoi, Vietnam. Her project focused on Social Entrepreneurship in Vietnam. She was invited to speak to six Vietnamese universities, give a presentation at the U.S. Embassy, and present her work at four conferences. In total, she spoke to over 800 participants in these events.

This sabbatical resulted in several benefits to CSU. CSU’s reputation was enhanced through receiving the competitive Fulbright grant as a research scholar in Vietnam. There were ten Fulbright scholars in Vietnam from all different disciplines during the time Dr. Sarason was there. CSU’s students benefited as she will be able to bring her growing understanding of Vietnam and its culture and business practices to her pedagogy at CSU. Moreover, she will be able to provide a more global perspective through her international experience with a developing Southeast Asian country, which will naturally carry into the classroom. Her research benefited her in that she was able to continue working on projects that she had started and bring new projects with scholars and cases in Vietnam.

C.A.P Smith – Computer Information Systems

During his 16 years at CSU, Dr. Smith’s research has been continuously funded by the Office of Naval Research (ONR). The theme of his research is the application of cognitive psychology and human factors to the design of decision support systems. He specializes in situations characterized by high stakes, uncertainty, and time pressure.

With the sponsorship of ONR and CSU, Dr. Smith spent his sabbatical year investigating the cognitive mechanisms by which decision makers incorporate information about uncertainty into their plans. Cognition generally refers to the human resources of attention, memory, and

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257 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item perception. He focused his sabbatical year on investigations that improved understanding with respect to the ways that uncertain information is perceived, how it is encoded into memory, and how our understanding of uncertainty influences estimates of success of our future actions. The results of his research have afforded improvements in the way people are trained to think about uncertainty, and have also led to improvements in the way that uncertain information is presented in a decision support system. Together with the other members of his research team, they reported their results in scholarly journals and transformed their findings into prescriptions that the U.S. Navy can use to improve their operations.

College of Engineering

Travis Bailey – Chemical and Biological Engineering

Over the last several years, Dr. Bailey’s research group in the Department of Chemical and Biological Engineering and Department of Chemistry has been actively exploring collaborations within the CSU School of Biomedical Engineering aimed at developing synthetic replacement technologies for biologically complex, hydrated soft tissues (e.g., synthetic replacements for the knee meniscus or intervertebral disc). However, it had become apparent that the most severe deficiency limiting development of biomedical solutions for soft tissue replacements was a knowledge gap that separated his research group of materials chemists and engineers from understanding the complexity of structure, mechanics, and interfacial interactions in biological tissues. The spirit of the proposed sabbatical was to create collaborative research and cross- disciplinary training opportunities abroad for himself (and ultimately CSU students within the synthetic materials communities) aimed at advancing the ability to resolve materials issues facing the biomedical technologies. The intent was to use the collaborative resources between CSU Departments listed above, and similar departments in his host university (Technical University of Eindhoven) to create such opportunities for professional growth.

As such, Dr. Bailey’s sabbatical period was spent as a visiting professor and Fulbright Scholar at the Technical University of Eindhoven (TU/e), Netherlands. He was appointed within the Institute for Complex Molecular Systems (ICMS), an interdisciplinary institute supporting researchers from several (TU/e) departments, including biomedical engineering, chemical engineering, chemistry, and physics. During his stay, he became an active member of several research groups with the intention of expanding his own group’s soft materials expertise in areas pertinent to driving their own research interest forward.

Ashok Prasad – Chemical and Biological Engineering

Dr. Prasad was a Visiting Research Fellow in the School of Physical Sciences at Jawaharlal Nehru University, Delhi, India. He collaborated with a well-known expert in statistical mechanics and his research group. He gave a talk to the School on his research and put together a short course for the Masters and Ph.D. students called “An Introduction to Biological Physics

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258 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item and Systems Biology”. The course involved 9 hours of lectures and was attended by a total of 20 students. During the spring semester, he was a visiting Research Scientist at the Center for Theoretical Neuroscience at Columbia University, New York, NY. He gave a talk on his research, attended an advanced theoretical neuroscience course and explored collaborations with his host and other members of the faculty. During the entire sabbatical, Dr. Prasad continued to work on his textbook.

Teaching students in India provided new insights into teaching in a different cultural context. His textbook will improve as a result of these insights. Collaborating with colleagues in India helped Dr. Prasad learn techniques and methods in non-equilibrium statistical mechanics, especially in the growing field of active matter. Thanks to classes as well as in-depth interactions with different members of the Center for Theoretical Neuroscience, Dr. Prasad came away with a significantly enhanced understanding of the field of theoretical neuroscience from some of the leading scientists in the field. As a result, he will be developing an introductory course that could be used for the new neuroscience degree program. He will also incorporate a chapter on this field into his textbook.

Christian Puttlitz – Mechanical Engineering

Dr. Puttlitz’s research expertise is the areas of orthopedic biomechanics and sensor development. Before his sabbatical, his group was not involved in 3D bioprinting or manufacturing of 3D scaffolds for tissues engineering. Because of his sabbatical and the expertise that was gained during this year, they expect to become leaders in the area of 3D printing of biological scaffolds. The development of a strong collaboration with Dr. Woodfield’s group at the University of Otago (located in Christchurch, NZ), is requisite to bringing his group to the forefront of this quickly evolving area and technology. In addition, aligning his group with Dr. Woodfield and his lab is absolutely necessary if they are to be competitively awarded large federal grants in the future.

In addition to the research aspect of the sabbatical, Dr. Puttlitz was able to develop a course that was badly needed at CSU. This Musculoskeletal Biomechanics course will become a key mechanical engineering senior technical elective and 500-level biomedical engineering class. Its interdisciplinary nature will attract students from a number of majors within CSU. Already, the course has proven to be a fertile recruiting tool for gaining highly competitive international graduate students into his lab.

David Thompson – Atmospheric Science

Dr. Thompson spent his sabbatical year based at the Institute for Atmospheric and Climate Science at ETH (Eidgenossische Technische Hochschule), Zurich. The Institute is widely viewed as one of the best climate research centers in the world. His stay in Zurich afforded him the opportunity to develop new collaborations not only with scientists at ETH, but at a variety of

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259 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item important institutes throughout Europe. It provided him with valuable time to develop existing research projects. It also allowed him to develop an entirely new area of research.

Dr. Thompson nurtured existing collaborations and developed new ones with faculty at ETH, the Laboratoire de Meteorologie Dynamique (LMD) in Paris, the Max Planck Institute for Meteorology in Hamburg, the University of Leeds, and the University of Reading in the U.K. The collaborations and interactions fostered during his sabbatical year directly benefit his research project and CSU by strengthening relationships with some of the best climate scientists in Europe. He gave presentations on thirteen occasions at institutes throughout Europe, which increased the visibility of climate research at CSU.

The research areas and papers developed during his time at ETH covered a variety of topics, including: 1) the role of natural variability in future climate change; 2) large-scale extratropical dynamics; 3) interactions between cloud radiative effects and the atmospheric circulation; 4) ozone/climate interactions; 5) atmosphere/ocean interaction; and 6) water vapor and the atmospheric circulation. The latter area of research is entirely new to Dr. Thompson and he would not have been able to develop the ideas that form the basis for this area of research without ample time to develop these new ideas and the opportunity to interact frequently with colleagues at LMD Paris.

Susan van den Heever – Atmospheric Science

Numerous international trips were taken in order to facilitate collaborations with others conducting research in cloud physics, cloud dynamics, convective organization, and aerosol- cloud interactions. Collaborations with Dr. Philip Stier (Oxford University) led to the development of an aerosol and precipitation initiative that will be introduced to the international scientific community through The Global Energy and Water Cycle Exchanges Project (GEWEX), a global body. This initiative is expected to involve weather and climate scientists from North America, Europe, China, and Brazil. Collaborations with Dr. Bernhard Vogel at Karlsruhe Institute of Technology have facilitated comparing COSMO-ART, a weather forecasting model they developed for the German Weather Service, and RAMS, the numerical cloud model developed by Dr. van den Heever’s research group. Travel to Botswana allowed her to assess the possibilities of conducting a field campaign in this unique climate region, where the impacts on thunderstorms of the Okavango delta and the smoke and dust from biomass burning and regional deserts have not been explored. This information will be utilized to spearhead initiatives to enhance long-term rainfall measurement strategies. Travel to South Africa opened up student exchange opportunities between the research group of a renowned African climate scientist and Dr. van den Heever’s own group.

This sabbatical allowed Dr. van den Heever to develop the observational capabilities of her research group. Through the funding accompanying her appointment as a CSU Monfort Professor, they purchased, built, and tested a suite of instrumentation to penetrate and measure

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260 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item thunderstorm characteristics including two sounding systems and a fleet of drones. They then utilized these instruments to track storms in northern Colorado for several weeks which produced extremely novel observations. These results will be utilized in improving weather predication models, and hence the prediction of severe thunderstorms. This cutting edge drone-enabled research has also resulted in numerous invitations to participate in upcoming field campaigns.

MATLAB, a powerful analysis tool, was not readily available when Dr. van den Heever was a graduate student. She has not had time since joining the faculty to learn these skills. Some of the sabbatical time was therefore spent learning fundamental MATLAB concepts.

Subhas Venayagamoorthy – Civil and Environmental Engineering

During his sabbatical, Dr. Venayagamoorthy was able to visit and collaborate extensively with researchers and students in two major universities: University of KwaZulu-Natal (UKZN) in South Africa and Stanford University. During the first half of his sabbatical, he was involved heavily on an international collaborative research project funded by the Office of Naval Research in South Africa with leading researchers at UKZN where he holds an Honorary Research fellow position. The focus of this field project was to investigate the small scale turbulence and mixing associated with the energetic flow and eddies that are characteristic of the Western Indian Ocean just off the East Coast of South Africa. Understanding the flow physics in the Sodwana Bay is likely to provide insights into the distinct ecosystem it sustains. During the second half of his sabbatical, Dr. Venayagamoorthy was invited to serve as the UPS Foundation Visiting Professor in the Department of Civil and Environmental Engineering at Stanford University, where he conducted research in environmental fluid mechanics. These collaborative research efforts resulted in some key findings related to turbulent mixing in environmental flows that was published as a Rapids Publication in the Journal of Fluid Mechanics, the leading international journal in fluid mechanics. He also wrote several funding proposals to federal agencies on new and ongoing research topics in fluid mechanics and oceanography. One proposal has since been successfully funded by the Office of Naval Research and the rest are pending.

During his sabbatical, Dr. Venayagamoorthy made important and impactful contributions to academe. Specifically, he gave 10 invited seminars/talks at major international conferences and workshops as well as at several major universities (Stanford University; University of California, Berkeley; University of California, Santa Barbara; University of Colorado; and UKZN). He organized a thematic session entitled “The Ocean’s Energy Cascade: Measuring and Modeling of Instabilities, Internal Waves, and Turbulence at the Submescoscale and Smaller”, at the 2016 Ocean Sciences Meeting sponsored by the American Geophysical Union, the Association for the Sciences of Limnology and Oceanography, and The Oceanography Society. A total of six peer- reviewed journal articles were published in top tier journals in his field during the sabbatical. Finally, Dr. Venayagamoorthy immersed himself in the development of a new world class Environmental Fluid Mechanics Laboratory (EFML) housed in the Glover Engineering Building on CSU’s main campus.

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Peter Young – Electrical and Computer Engineering

Dr. Young’s sabbatical focused on tools for energy management, including advanced control and system-level optimization of both behavioral and technical aspects of energy use. This included activities in collaboration with the National Renewable Energy Laboratory (NREL) in Golden, CO, Woodward in Fort Collins/Loveland, CO, and the Leeds Sustainability Institute (LSI) at Leeds Beckett University (formerly called the Centre for the Built Environment at Leeds Metropolitan University) in the United Kingdom.

These activities have resulted specifically in:  Establishing strong collaboration between NREL and the CSU Energy Institute on microgrids,  Creating real-time hardware linkage between NREL ESIF and CSU EPSL labs for grid studies,  Ongoing collaboration between Woodward and CSU on energy-related topics,  Establishing strong collaboration between LSI and CSU on building energy management,  Visiting Professor appointment at Leeds Beckett University,  Fellow of the Leeds Sustainability Institute,  Publishing various multidisciplinary conference and journal papers, plus a book chapter,  Patent applications filed for both CSU and NREL.

College of Health and Human Sciences

Lisa Daunhauer – Human Development and Family Studies

The goals of Dr. Daunhauer’s sabbatical included continuing education on research methods and grant writing, submitting grant proposals, and disseminating research in peer-reviewed manuscripts. Through engaging in scholarly activities and continuing studies, Dr. Daunhauer’s sabbatical activities have improved her effectiveness as an instructor, contributed to efforts to recruit and retain students, and have served to enhance CSU’s reputation. These activities have also enhanced her competitiveness for continued successful funding of federal grants and for continued publishing of her work in high-impact journals. Specifically, she started data collection for a federally-funded intervention grant and submitted two NIH-R01 proposals that included new collaborations that resulted in incorporating valuable new grant writing strategies. Additionally, she submitted seven peer-reviewed manuscripts and supported several student conference submissions. She also continued to mentor graduate students and maintained service in regard to being an Associate Editor for two premier journals in her field. Her accomplishments have been congruent with the vision and mission of her department, the College of Health and Human Sciences, and Colorado State University.

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Juyeon Park – Design and Merchandising

During her sabbatical leave, Dr. Park participated in diverse scholarly activities, which included (a) executing and operating funded projects, (b) developing additional grant proposals, (c) submitting journal manuscripts, (d) continuously fulfilling academic advising duties, and (e) building and maintaining research partnerships.

To summarize outcomes of the activities in which she was involved while on sabbatical, Dr. Park actively engaged in 4 funded research projects; submitted 3 new grant proposals as a PI/Co-PI; submitted 4 refereed journal manuscripts; served on 3 graduate students’ thesis committees; and established and strengthened research collaborations with international and national research partners (Seoul National University in Korea, University of Minnesota, Cornell University, Oklahoma State University, and USDA NC-170 multistate research group).

The research projects and collaborations developed during her sabbatical are highly anticipated to enhance her opportunities for future funding and expand her research networks. Dr. Park had a very productive semester during her leave, and is grateful for having this opportunity and will use this experience to benefit both CSU students and her own professional growth.

Wendy Wood – Occupational Therapy

Dr. Wood used her sabbatical leave to transition from being head of the Department of Occupational Therapy to being a Professor of Occupational Therapy with a new joint appointment as the Director of Research of the Temple Grandin Equine Center in the College of Agricultural Sciences. She needed to dive deeply into studying equine-assisted activities and therapies (EAAT), complementary and alternative treatments that integrate humane uses of horses within educational and health services for people with disabilities and other life changes. She also needed to help position CSU as a global leader of the interdisciplinary science of EAAT, and of science-based higher education and outreach in this growing industry.

Dr. Wood’s sabbatical made it possible for her to learn first-hand from leaders in the industry of EAAT across the United States. She was able to experience the value of equine-facilitated learning, to study hundreds of conceptual and research papers on EAAT, and indulge in reading dissertations and tomes on the subject. She took classes on equine behavior and research methods. She was able to complete analyses of data from a systematic mapping review of 34 years of refereed papers on EAAT, a study now in its fourth year. Dr. Wood and her students presented their findings at national and international peer-reviewed forums. She and her students and her new interdisciplinary colleagues began to build collaborations through shared processes of writing grants and papers. Perhaps the greatest gift of her sabbatical was the freedom to study, explore, imagine, sustain focused progress, and meet and engage a wide community of interested scholars, leaders, and providers and to help CSU begin to emerge as a global leader of an interdisciplinary science of EAAT.

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College of Liberal Arts

Karrin Anderson – Communication Studies

Dr. Anderson conducted archival research at the Library of Congress for her new book project, gave several invited lectures on topics related to that project, and drafted an article that is currently under review with the Quarterly Journal of Speech and which will be a chapter in her book. She drafted an article and instructional unit for the refereed journal Vices of Democracy which has been accepted for publication. She completed a 28-page draft of a coauthored paper on the framing of Spanish politician Teresa Rodriguez, a candidate in Spain’s regional elections. She and her coauthor, who is a doctoral candidate in Spain, will complete that essay and submit it to the Journal of International and Intercultural Communication. She also completed a proposal for an edited book which is now under contract and she secured the participation of the project’s 15 contributing authors. Finally, she prepared a new graduate seminar which she is currently teaching.

Dr. Anderson’s sabbatical gave her time to begin two book projects, write a substantial portion of another essay, and complete two additional essays. The majority of the research she produced is related to her ongoing research on gender, political identity, and the pornification of political culture. Her research allowed her to expand her expertise in the topic of sexualized citizenship by examining historical texts and by researching a case study outside the U.S. context. The project she developed in collaboration with a communication scholar in Spain contributes to her department’s efforts to introduce international and global perspectives into research and teaching. The article that was accepted for publication in Voices of Democracy assessed anti human trafficking rhetoric and allowed her to expand her expertise in the issue of human trafficking. That work will be shared with students in her Communication and Anti Human Trafficking course. It will also better equip her for the service she does in the community as a board member and trainer for two local anti-trafficking organizations. Finally, the invited lectures she gave enhanced her own scholarly reputation as well as that of the Department of Communication Studies. She was also able to do some graduate program recruiting.

Joel Bacon – Music, Theatre, and Dance

During his sabbatical, Dr. Bacon spent a month in Grunwald/Munich, Germany in residence at the St. Thomas Church. There, he lectured on the liturgical and cultural significance of a collection of Bach’s music (Clavierubung III), and recorded it and other Bach works for a forthcoming double CD. While in Munich, he also worked with a young composer from Salzburg on the premier recording of an experimental work for organ and electronics. In Solesmes, France, he studied Gregorian chant at the abbey which is the most important historical center for chant research in the world. Finally, he pursued his research interest on the composer Herman Berlinski (1910-2001) by visiting his archives at the Jewish Theological Seminary in

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New York City, interviewing his son, David Berlinski, at his apartment in Paris; and performing (and editing) a major organ concerto by Berlinski with the Fort Collins Symphony.

Dr. Bacon’s work in Germany allowed him to practice, perform, and record on an organ especially suited to the work of J.S. Bach. (No similar instruments are available in Colorado.) The experience of studying Bach’s music there greatly benefitted his practical understanding, which he intends to share with his students. The recordings will hopefully enlarge his reputation internationally – as a scholar of both Bach and contemporary music – and draw interest to his work at the university. His study of Gregorian chant introduced him to groundbreaking work in medieval musicology, and connected him to leading scholars in this field; the sabbatical allowed him to experience chant in an authentic European monastic setting. These experiences will directly impact his teaching of liturgical music courses and the graduate course in medieval music. Finally, his sabbatical work on the music of Herman Berlinski has given him unique access to manuscripts of great interest to organists around the world. He intends to publish and perform many of Berlinski’s unknown works in the upcoming year.

Roe Bubar – Ethnic Studies

Dr. Bubar’s sabbatical allowed her to lay the foundation for a significant development in her scholarship in the broader area of qualitative inquiry with a specific emphasis in Indigenous methodologies and collaborative Indigenous scholarship. She mentored two young Native scholars in a study on microaggressions, violence, and Native women. This project allowed her to guide a project where a team developed an Indigenous approach for data collection, analysis, and methodology while also incorporating a mixed method (incorporation of grounded theory, a Western approach, and an Indigenous methodology).

The overall benefit of the sabbatical for her research and scholarship is that she conducted data analysis, researched, gathered, and reviewed research materials to not only explore these materials in depth but it also allowed her to make inroads on several other areas of exploration for future research and development. In compiling and reviewing these materials, she produced and completed three publications one of which was a publication on Indigenous methodologies and ethics for a text on Qualitative Inquiry in Neoliberal Times. She was also able to pursue collaborative Indigenous feminist scholarship now at the center of her research agenda particularly as methodology for future exploration of longevity of scholars to successfully remain in the academy. Collaborative and interdisciplinary scholarship is promoted within the academy and she explored intersectional ways in which gender contributes to marginalization of women of color particularly those engaged in women of color feminist and collaborative work.

Gerald Delahunty – English

During his sabbatical, Dr. Delahunty presented two conference papers. The first was at the 26th Annual Scandinavian Conference of Linguistics at the University of Aalborg, Aalborg, Denmark,

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Amnesty International (AI) and Philanthropic Fundraising (PF) letters: A comparative move analysis, which has been accepted for publication in the proceedings of the conference. The second, Language, Text and Ideological Opposition in Amnesty International(AI) Appeal Letters on Behalf of “Prisoners of Conscience” was at the 5th New Zealand Discourse Conference, Auckland University of Technology, Auckland, NZ. Dr. Delahunty is developing a substantially expanded version of this presentation for submission to Pragmatics, the journal of the International Pragmatics Association, his primary professional association. In addition, he resumed a collaboration with Dr. Andrea Calude, Senior Lecturer in Linguistics at Waikato University, Waikato, NZ, on qualitative and quantitative analyses of a corpus-derived data set of sentences containing the expression just because.

Dr. Delahunty’s sabbatical benefitted him by allowing him to engage in discussion on the topics of his papers with internationally recognized colleagues, resulting in significant revisions to his Aalborg paper, and to adjustments to how he had been thinking about the development and organization of his research on ideology in Amnesty International appeal letters. Besides the pending publication of his paper in the Aalborg conference proceeding, the University benefitted from his presence as its representative in venues not usually visited by his CSU colleagues and by his discussions with conference attendees and local faculty members about their programs. These discussions have led to initial inquiries about the possibility of coming to CSU as a visiting scholar by the internationally respected scholar, Hans Goetsche.

Dr. Maricela DeMirjyn – Ethnic Studies

During her sabbatical leave, Dr. DeMirjyn worked on a book proposal project that will assist in developing her portfolio for post-tenure review and establish her as a scholar in the fields of disability studies and Chicana studies. The book proposal is a theoretical overview of (self- identified) disabled Chicana and Latina artists whose artwork displays and embodies their intersectional identities. Although there have been a few academic articles to examine this phenomenon, this appears to be the first book project to emphasize the experiences of disabled women of color from various Chicana/Latina Perspectives housed within visual and performative arts. During her leave, Dr. DeMirjyn was able to work on the introductory chapter that establishes the theoretical framework for the manuscript and begin making edits on two chapters in the book project. In addition, she made revisions for an article dedicated to art activism within social movements as requested by a journal’s editor and it was accepted for publication. Finally, she applied for two internal grants through TILT and Education Abroad. She received funding from both to work on research and teaching projects involving healing traditions and Chicanas/Latinas in the borderlands of the United States and Mexico.

Dr. DeMirjyn’s sabbatical leave provided her with the time to focus solely on her writing and research agenda. It helped her begin organizing the structure of a book manuscript that will strengthen the research portion of her promotion portfolio and provide recognition of her academic status in the fields of disability studies, Chicana studies, and ethnic studies.

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Additionally, the subject matter expertise she gained will influence her teaching by broadening the scope of class materials she uses in her graduate courses pertaining to Chicana feminism and critical disability studies as well as her undergraduate Chicana studies courses. This will increase the university’s body of knowledge and proficiency in these intersectional areas of study. Dr. DeMirjyn anticipates this project will open doors for future collaborative research projects with colleagues in peer institutions who are working to increase ethnic studies perspectives in the field of disability studies and potential research opportunities for ethnic studies undergraduate and graduate students attending CSU. Furthermore, this work will provide links between CSU and Chicana/o and Latina/o community members in Colorado who also identify as disabled.

Mark Fiege – History

Dr. Fiege used his sabbatical leave to work on a book project that deals with the history and philosophy of late 20th century and early 21st century concepts of natural resources management. He spoke at length with various people who lived through this period of conservation. He also conducted research in the journal literature on ecology and natural resource management going back about a century. He visited Allen Library, University of Washington, to research the papers of Floyd Schmoe, a Quaker peace activist and, after the First World War, the first chief naturalist at Mount Rainier National Park. Twice, Dr. Fiege visited Knight Library, University of Oregon, to research the papers of John Roberts White, noted for his unorthodox superintendence of Sequoia National Park from 1920-1947. Based on his work during the sabbatical, Dr. Fiege developed a preliminary explanation of what he calls the “dissenting conservationists”, resource agency professionals who resisted the status quo management practices of the Forest Service, the National Park Service, and other federal agencies that employed them. He presented his thoughts on the dissenting conservationists in a keynote address to the 11th Annual WHEATS symposium (Workshop on the History of Environment, Agriculture, Technology, and Science) at the University of Colorado, Boulder. He completed a one-week research and writing residency at McGraw Ranch, a scientific research station administered by the National Park Service at Rocky Mountain National Park. At McGraw Ranch and over the course of the fall, Dr. Fiege drafted approximately 35 pages of what will become the introduction or a chapter of Elegant Conservation.

This sabbatical allowed Dr. Fiege to deepen his knowledge of his topic and enabled him to draft a portion of what will become a peer-reviewed book manuscript. It allowed him to accumulate information that he intends to incorporate into a peer-reviewed journal article on John Roberts White. It benefited his teaching by augmenting the knowledge that he brings to his work in the Public Lands History Center, that he uses in his teaching and mentoring of graduate students, and that he applies to three of his undergraduate courses. This sabbatical also served the CSU land grant mission of research and engagement and it demonstrated that CSU faculty members produce knowledge that is useful to the world – in this case, that is useful to resource managers

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267 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item and conservationists in public land agencies who are now facing social and environmental problems of enormous complexity and unprecedented magnitude.

Michelle Glantz – Anthropology

Dr. Glantz’s sabbatical allowed her to reposition and partially redefine her long established research program so that she can maintain an active research agenda while also fulfilling duties as Chair of the Department of Anthropology. Instead of relying on data derived from summer field work in Central Asia as the subject of publications, she spent spring of 2016 honing a set of methods that are used in a laboratory setting and are appropriate for the study of human dental remains. Using these methods, she collected a large and unique dataset on dental non-metrics that will provide the raw material for a number of high impact publications. During her time outside of Fort Collins, she laid the foundation for collaborative work with scholars from the Museum of Anthropology and Archaeology at the University of Pennsylvania, the National Museum of History and Science in Zagreb, Croatia, as well as the Institute of Archaeology and Ethnography in St. Petersburg, Russia. These relationships will provide field opportunities for her graduate students as well as herself in years to come. She was also able to finalize a manuscript that has been published on line (early view in Quaternary International, a relatively high-impact venue for anthropologists).

While working at the Museum of Anthropology and Archaeology at the University of Pennsylvania, she was formally invited to become a consulting scholar. This title affords a number of benefits that will directly impact her future access to skeletal collections and her ability to educate her graduate students and position them for the job market. In addition, this position will allow her to recruit potential graduate students into CSU’s programs, as she had contact with undergraduate students from many different institutions when working in the museum at the University of Pennsylvania. Her international connections also provide a way to increase the visibility of the programs in the Department of Anthropology to a cohort of students and scholars who have no previous knowledge of CSU.

Kirk Hallahan – Journalism and Media Communication

Dr. Hallahan spent his sabbatical revising two books. One is a 16-chapter historical account of John D. Rockefeller Jr.’s public relations response to the 1913-1914 Colorado Coal Strike, a major milestone in American labor history and his area of professional interest, public relations. Completion of the project had been deferred for a number of years due to other campus obligations, and will contribute to his standing as a senior scholar in his field and highlight the university’s role in promoting public understanding of one of the most controversial and sordid events in the state’s political and labor history, the “Ludlow Massacre”.

Hallahan’s second project was a 15-chapter e-textbook on Digital Promotion Principles and Practice that will contribute to his teaching in the area of strategic communications and benefit

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268 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item the university as a material that can be used in two courses offered by the Department of Journalism and Media Communication.

Roze Hentschell – English

Dr. Hentschell’s sabbatical was primarily spent writing her monograph-in-progress, a cultural geographical study of St. Paul’s Cathedral in the sixteenth and early seventeenth centuries. She completed three chapters during the sabbatical. Additionally, she completed a chapter for The Age of Shakespeare (essay collection for Oxford University Press) and completed and submitted a journal article for Early Theatre. She delivered an invited lecture on her book in progress to an audience at the Early Modern Center at UC Santa Barbara. In addition to writing, she joined the editorial board of the new publication series emcImprint (for which she reviewed a book manuscript) and joined the Executive Board of Rocky Mountain Medieval and Renaissance Society.

The writing that was enabled by the sabbatical allowed Dr. Hentschell to considerably accelerate the progress she has heretofore made on the book. Her two completed essays will be published with international presses, thus promoting Colorado State University to a wide audience. Her scholarly reputation (and by extension her institution affiliation) was increased by her lecture at UCSB and by her membership on a regional organization’s executive board and a publication’s editorial board. Some of the research and writing that she conducted had direct benefits for students in the English department as Dr. Hentzell is teaching a new class on theories of cultural geography.

Price Johnston – School of Music, Theatre, and Dance

Professor Johnston began pre-planning for the national accreditation of the Theatre Program at Colorado State University. He attended the National Association of Schools of Theatre (NAST) National Conference in Louisville, Kentucky. At the conference, he attended the extended 2-day session for Preparing for NAST Evaluation and Accreditation. He analyzed Colorado State University Theatre and its current situation and the necessary changes needed for infrastructure and curriculum in order to receive accreditation. He also attended a day long professional development conference for “New Theatre Administrators in Higher Education”. He presented at and attended the United States Institute for Theatre Technology (USITT) Conference in Salt Lake City, Utah. At that conference he was able to meet with the heads of similar Design and Technical Programs and evaluate CSU’s curriculum next to theirs. He has adapted CSU’s curriculum to meet national standards, and created a foundation that propels our program as a showcase of innovation in our region.

This evaluation and work towards accreditation will help to establish Colorado State University Theatre as a leading, cutting edge program in a national spotlight. This research will bolster our current growth in majors and propel us not only toward meeting national standards, but lay

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269 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item foundation work for a possible BFA and MFA. Personally, Professor Johnston was able to grow as an administrator by adding the continuing education component and additional leadership training essential to guiding a program into accreditation and the future of theatrical higher education. As a professor and professional designer, presenting at USITT placed our work in Theatrical Digital Media Design in the public eye and on an international level. At that conference and as a presenter, he was able to showcase his work on the Off-Broadway, Mint Theatre Production of Donogoo. That production earned both a 2015 nomination for a Drama Desk Award and a 2015 American Theatre Wing- Henry Hewes Design Award Nomination.

Wes Kenney – School of Music, Theatre, and Dance

During his sabbatical, Professor Kenney took three trips to different parts of the country. He travelled to Oregon and observed classes and other conductors at work during the course of six days. Stops were made at the University of Oregon, Oregon State University, George Fox University, and Western Oregon University. He travelled to the University of Texas at Arlington and the University of North Texas. Travels and observations were made to the Mid-Atlantic region with stops at George Mason University, James Madison University, University of Virginia, and the Peabody School in Baltimore.

The sabbatical project was to study conducting curriculum at various schools. Benefits to the faculty member include:  Learning new techniques in teaching the craft including projects that give students the opportunity to rehearse,  Gathering of information that will be applied to articles on conducting pedagogy,  Observing other conducting pedagogies to assess what deficiencies can be expected of students entering the Summer MME program in conducting.

Benefits to the University include:  Gathering information to help not only Professor Kenney’s effectiveness in codifying the curriculum, but also in the assessment of the curriculum in relationship to other programs,  Interacting with other conducting teachers as to what is taught at CSU will benefit recruiting students for the Summer MME program.

Bradley Macdonald – Political Science

During his sabbatical, Dr. Macdonald worked on his book project, Critical Political Theory: Theorizing Politics, Politicizing Theory. He engaged in research at university libraries, read primary and secondary texts related to the project, and was able to finish one chapter and begin organizing two other chapters of the manuscript. Most importantly, he was able to organize his ideas and research in such a way as to foresee the future completion of his manuscript. Thus,

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270 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item overall, his sabbatical was successful in allowing him to set the foundation for getting the book project finished within the near future. Moreover, related to the research on his book project, he prepared for his contribution as a roundtable participant on the panel, “Critical Theory in the 21st Century: New Challenges and Directions”, at the annual meeting of the American Political Science Association in Philadelphia.

Dr. Macdonald’s sabbatical afforded him the time to think and to theorize in new and productive ways and learn new conceptions and traditions within his area of expertise, all of which have opened up new ideas about teaching theory and doing research in the future. Moreover, making good headway on his book project will allow him to publish research that he thinks will place him as an important participant within current conversations in contemporary political theory nationally and, possibly, internationally. The research completed on his sabbatical will enhance our university’s reputation by showing the vitality and contemporary relevance of theory research and writing at CSU to the larger intellectual community. His research and writing during his sabbatical will also enhance his students’ learning experiences for he will be able to provide a deeper and more nuanced knowledge of both the tradition of political thought and contemporary political theory in the core curricula at both the undergraduate and graduate levels.

Katie McShane – Philosophy

During her sabbatical leave, Dr. McShane conducted research and writing for a set of projects in ethics focused on the adequacy of individualistic approaches to ethics and environmental ethics. This resulted in four publications currently in press (“Is Biodiversity Intrinsically Valuable? And What Might That Mean?” in the Routledge Handbook of the Philosophy of Biodiversity; “Holism” in The International Encyclopedia of Ethics from Blackwell; “Intrinsic Values and Economic Valuation,” in Ecological Economics: Natures and Society from Routledge), two papers currently under submission at a peer-reviewed journal (“Values and Harms in Loss and Damage,” and “Climate Change and the Place of Non-Economic Values in Conceptions of Sustainability,” both at Ethics Policy & Environment), two paper manuscripts in progress (“Anthropocentrism in Climate Ethics and Policy” invited for Midwest Studies in Philosophy, and “The Role of Awe in Environmental Ethics,” invited for a conference at Indiana University), one book manuscript in progress (Holism and Individualism in Ethics), and two co-edited textbooks in press (Environmental Ethics, 7th ed., and Food Ethics, 2nd ed., both from Cengage). During this sabbatical, Dr. McShane continued to advise four Master’s theses and serve on committees for two additional M.A. students and two Ph.D. students. She chaired two search committees for faculty hires in the Philosophy Department.

Jaclyn Susan Marie Opp – Political Science

During her sabbatical, Dr. Opp worked in the Office of Policy (OP) at the Environmental Protection Agency (EPA) in Washington, DC as a “Pracademic Fellow”. This was a very high level administrative position with the dual goals of providing assistance to the agency while also

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271 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item developing her skills as a “Pracademic”. All of her activities at the EPA involved contributing to the transition efforts of the agency in preparation for the upcoming administration change. Specific activities included assisting with the transition papers for the agency, research on sustainable economic development for policy development in the EPA, the development of interagency partnerships with several agencies including HHS and EDA, and the design and implementation of a quarterly meeting of the Smart Growth Network (SGN). In addition to her time in the EPA, she was able to complete three scholarly articles (2 already in print and 1 forthcoming) and a large portion of a book project that is now under contract with a major scholarly series on public administration.

The sabbatical leave was of significant value to her research and teaching as well as to the University and students. In order to be an effective instructor and researcher of public administration, it is necessary to understand the nature of bureaucracy, bureaucratic policymaking, and evolving public sector demands. By working alongside high-level EPA officials, she was able to contribute to the policy making activities of the agency and learn about the internal dynamics of the transition and budgeting process. The lessons derived from this experience have provided her with years of important research projects, important insights for teaching public administration, and invaluable contacts within the agency. In addition to the benefits received from working alongside EPA officials, she was able to complete several research projects of relevance to the work she completed in the agency. Specifically, three articles were published or are forthcoming and a book project was substantially completed during her time on leave.

Anita Pena – Economics

Dr. Pena used her sabbatical time to start new research on how skills relate to wage inequality across racial and ethnic groups in the U.S. using new data from the OECD. She presented this new work at the 2015 Southern Economic Association Meetings and wrote an outreach publication which appeared in the fall 2015 issues of the Hispanic Economic Outlook. She also organized an academic conference (along with two others) honoring economist Michael J. Boskin which took place at Stanford University. In addition to her organizational role, she discussed an academic paper and served as a dinner program presenter. As another new service activity to her profession, she was the representative of the American Society of Hispanic Economists on a three-member committee to choose papers to be published in the American Economic Review Papers and Proceedings. She also was an invited speaker on the economics of immigration and agricultural labor markets at CSU’s One Health Club’s panel “Immigration and Agriculture in Colorado: A One Health Perspective”, and refereed several papers for academic journals. Finally, she worked on three other academic papers. She completed a major revision and resubmission of an article, “Effects of the Great Recession on the U.S. Agricultural Labor Market,” along with co-authors and a revision of “PIAAC Skills and Economic Inequality” by herself. Finally, she worked on a substantial revision of “Ethnic Diversity, Income Inequality and the Social Distance of Face-to-Face Crimes” with other co-authors.

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272 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item

Benefits included time devoted to a new research area which should result in academic journal publication in the next couple of years in addition to an outreach publication, which already appeared and serves to more quickly disseminate and promote current research ideas to the research community, policymakers, and the public. Presentation of this research was useful for soliciting expert feedback to aid in revision and to further circulate results. Conference participation provided networking opportunities and supported the active presence and visibility of CSU’s Department of Economics and the University within major academic regional associations and within a major field (public economics). The first two papers for which Dr. Pena worked on revisions are now accepted at American Journal of Agricultural Economics (top agricultural economics field journal) and Journal of Research and Practice for Adult Literacy: Secondary, and Basic Education (journal of the Commission on Adult Basic Education respectively.) The third paper is now under another revision in response to peer feedback. Overall, the sabbatical allowed Dr. Pena time to engage in broad, time-intensive service and research activity visible within and outside of the university in addition to new research related to race, ethnicity, and diversity issues which is complementary to and interrelated with college and university goals and is highly relevant to current public policy issues.

Danielle Tavani – Economics

Dr. Tavani started a new project on the role of the public sector in growth and distribution models. She made progress toward the second edition of the book Growth and Distribution (Harvard, 1999). She presented a paper at the XIX International FMM Conference in Berlin and revised and resubmitted two previously submitted papers for publication.

Dr. Tavani’s sabbatical leave was instrumental in developing a new research area, which is bearing fruit already and will result in a series of academic papers to be published in peer- reviewed journals. The sabbatical gave her time to work toward the book revision and should lead to a Harvard University Press book publication. Finally, conference participation, submission of papers for publication in peer-reviewed journals, and working paper series increased both her own visibility, as well as CSU’s visibility, in the international academic community.

Ramaa Vasudevan – Economics

Dr. Vasudevan started a new project on Global Money, Finance and the Evolution of Empire. He made considerable progress in particular in exploring the rise and internationalization of the Renminbi. He gave two talks at Delhi University and one talk at Jawaharlal University in the fall semester. In the spring semester he gave a talk at New School for Economics and also presented a paper at the Eastern Economists Association Conference in Washington. He submitted one chapter for a Handbook for Heterodox Economics and two papers to the Journals, Review of Keynesian Economics (Accepted) and the Review of Radical Economics (under review).

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273 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item

His stay at NIPFP and the New School helped publicize the distinctive economics program we have at Colorado State University. The Economics Department at CSU is one of the few that offers a truly pluralistic program with training in both heterodox and orthodox perspectives. The New School is leading center for rigorous heterodox economics and strengthening ties and collaborations with the department will prove beneficial to the visibility and standing of our program. While in India, he was able to publicize CSU’s program among prospective students, in particular through talks and seminars at Jawaharlal University and Delhi University.

More importantly, he was able to get his larger research project on Global Money off the ground and venture into some new terrain in investigating China and the rise of the Renminbi. This research project engages with an issue of pressing national and international importance as the global economy navigates the tortuous path out of a crisis. While the work will take some time to fruition, Dr. Vasudevan expects this work to bring the Economics Department and CSU into this global conversation, further enhancing CSU’s reputation as a premier research university.

Doug Yarrington – History

Dr. Yarrington accomplished his goals of research and writing during his sabbatical. These activities were related to his research project on corruption and state formation in Venezuela between 1908 and 1948. He completed an article manuscript titled “Public Opinion and Modernity in Venezuela’s Anti-Corruption Trials, 1945-1948,” for submission to the Journal of Latin American Studies. In addition, Dr. Yarrington spent five weeks in London conducting research on the relations between British oil companies and the Venezuelan government. Finally, he completed a draft of a chapter on oil wealth and corruption between 1908 and 1935 which will form part of his book manuscript when the project is complete.

These activities provided substantial professional benefits. While in London, Dr. Yarrington was invited to present his overall research project to a seminar at the University of London. This provided him with valuable feedback on his project, and increased his reputation among British historians of Latin America. The sabbatical allowed him to make significant progress toward completion of his book manuscript, which will form the basis of his eventual promotion to full professor and will enhance the reputation of the History Department at CSU.

College of Natural Sciences

Patricia Aloise-Young – Psychology

Dr. Aloise-Young used her sabbatical to collaborate with researchers at the Leeds Sustainability Institute (LSI) at Leeds Beckett University, Leeds, UK (formerly called the Centre for the Built Environment at Leeds Metropolitan University) on residential energy efficiency research. She established a research collaboration with NREL’s Residential Building Group. She submitted journal articles for publication based on previously conducted research. She completed a book

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274 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item chapter and one journal publication which came out of her LSI collaborations. In addition, she wrote another book chapter and submitted two articles based on prior research and one new review article.

Dr. Aloise-Young’s sabbatical activities allowed her to establish linkages to a national laboratory and an international university, both of whom are on the cutting edge of energy efficiency research and policy. This has increased her reputation as an energy researcher which will improve her changes for promotion to professor. Moreover, in her interactions, she has exposed her new colleagues to the research being conducted at the Energy Institute, bringing greater visibility to the university’s clean energy research as a whole.

Renzo Cavalieri – Mathematics

Over the course of his sabbatical, Dr. Cavalieri had two long term visits with very prestigious institutions (Imperial College in London, ETH in Zurich), spoke at an international conference (Chern Institute, China), gave ten invited lectures about his research in various institutions in five different countries, continued established collaborations and began a new one in Zurich.

Dr. Cavalieri’s sabbatical activities have been a stimulating and enriching opportunity for his research activity, and an important moment for the dissemination of his research. Dr. Cavalieri has represented CSU’s mathematical research around the world. His being a part of the global mathematical community is beneficial to CSU. Graduate students from CSU will benefit from being connected to a broader network than just CSU, and their degree will be more easily recognized and valued when they are on the academic job market.

Chaoping Chen – Biochemistry and Molecular Biology

During her sabbatical leave at the University of Colorado Anschutz Medical Campus (UC AMC) the High Throughput Screening and Chemical Biology Core Facility at Skaggs School of Pharmacy and Pharmaceutical Sciences, Dr. Chen conducted the following activities:

 Worked with Dr. Linfeng Li, the manager of the core facility, on a Perkin Elmer Janus liquid handler (3 arm) to optimize parameters essential for a satisfactory HTS performance with the primary cell-based assay she proposed to use,  Established a protocol to enable screening of ~2500 compounds at once in a 3-day experiment,  Actively participated in seminars and interactions with faculty members, staff, research associates and graduates at the Skaggs School of Pharmacy to discuss various scientific topics.

This sabbatical gave Dr. Chen a unique opportunity to gain significant personal and professional growth in the field of HTS. She became proficient at HTS assay design, operation, data

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275 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item collection, and analysis. Additionally, this sabbatical has established a cell-based functional assay in a high throughput screen (HTS) compatible format for identification of novel HIV-1 protease auto processing inhibitors. The initial screen of ~20,000 life diversity small molecule compounds identified promising hits that will be further characterized in the near future. These results provided strong supporting evidence for the development of her ongoing research program. Dr. Chen’s interactions with various people at UC AMC also delivered a testament that CSU is a great place to live, to study, and to perform ground-breaking research. Dr. Chen presented her sabbatical work to her department and she’s glad to report that many graduate students were excited about the potential of HTS and the promising data she obtained. Collectively, this sabbatical was very productive and inspiring for her professional growth in the field of HTS and had profound ripple effects on areas such as enhancing Colorado State University’s reputation and the students’ educational experiences.

Santiago Di Pietro – Biochemistry and Molecular Biology

Dr. Di Pietro’s sabbatical took place at the University of Colorado, Boulder, Department of Molecular, Cellular and Developmental Biology (MCDB). During this experience, he:  Carried out high pressure freezing (HPF) of yeast and human cells using the Wohlwend Compact High Pressure Freezer and freeze-substitution of samples with a Leica AFS system using the Lowicryl Hm20 resin for embedding and various fixatives.  Learned how to utilize a Leica Ultracut microtome and obtained thin sections for standard transmission electron microscopy and immunogold staining of several proteins of interest. He also obtained thick sections for electron tomography.  Imaged various samples using different transmission electron microscopes.  Learned to perform immunogold labeling of proteins of interest containing a GFP tag using anti-GFP antibodies and secondary antibodies with gold particles of different sizes.  Participated in lab meetings, seminars, Ph.D. student advisory committees, and established collaborations with his host lab and other groups at MCDB.

Part of the results he obtained during the sabbatical contributed to a publication from his lab in the prestigious journal Proc. Natl. Acad. Sci. USA. The expertise he gained and collaborations established during the sabbatical helped obtain a grant from the National Science Foundation on which he is the only Principal Investigator. Two additional grants were written during the sabbatical and are based on the expertise and preliminary results obtained during the sabbatical. The knowledge gained during the sabbatical will also enhance CSU students’ educational experiences. Considering the importance of electron microscopy in cell biology, Dr. Di Pietro is now better equipped to both teach courses and mentor students performing research.

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276 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item

W. Chris Funk – Biology

Dr. Funk was awarded a Fulbright Fellowship to conduct the first half of his sabbatical at La Universidad da Los Andes in Bogota, Colombia to start a new collaborative project on the mechanisms generating Colombia’s exceptional biodiversity, focusing on frogs. The focus of this collaborative research was to harness the power of genomics to understand the mechanisms causing adaptation, population divergence, and speciation in a frog species in the Colombian Andes. He used a genomic approach to determine the landscape features that restrict gene flow among populations of these species; test for adaptive divergence among these populations; and identify which environmental gradients cause adaptive divergence.

During the second half of his sabbatical, he expanded his research on the genomics of birds, mammals, amphibians, and reptiles in the California Channel Islands in collaboration with researchers from the Smithsonian Institution and The Nature Conservancy. In addition to advancing these two new research projects, his sabbatical provided time to catch up on old projects, manuscript and grant proposal writing, and plan his future research direction.

His sabbatical at Los Andes helped to improve his classes since his return to CSU. In particular, the new skills he developed in cutting edge genomic analyses are directly impacting how he teaches. His experiences in Colombia provided additional material and experiences in the tropics that will be folded into one of his courses. He acted as an ambassador for CSU while he was at Los Andes. They have a top-notch academic program, on par with the best programs in the U.S., which produces excellent undergraduate students eager for graduate opportunities in the U.S. Dr. Funk did his best to recruit the best and brightest of these students to CSU’s nationally ranked Graduate Degree Program in Ecology and the growing evolutionary biology group.

Kimberly Henry – Psychology

Dr. Henry’s sabbatical was used to work exclusively on community-based interventions to promote health. She worked on four funded intervention trials each focused on a different population and different aspect of human health and well-being. In the first (funded by the Wounded Warrior Foundation), she worked with a team of faculty from the Occupational Therapy Department to examine the effectiveness of a sleep intervention for CSU student veterans who experienced trauma during their service. In the second (funded by Colorado Clinical and Translational Sciences Institute), she worked with Planned Parenthood of the Rocky Mountain Region to establish and evaluate the effectiveness of a lay health worker network to promote reproductive and sexual health in high-need Denver neighborhoods. In the third (funded by the National Cancer Institute), she worked with team members from Klein Buendel, Eastern Tennessee State University and the University of Massachusetts to develop and evaluate a social media campaign designed to deter indoor tanning among teens. In the fourth (funded by the William T. Grant Foundation), she worked with colleagues in the Human Development and Family Studies Department to evaluate Campus Connections, a structured mentoring program

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277 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item which matches trained CSU students with Larimer County youth at risk for maladaptive development. In addition to these four intervention projects, she spent the year preparing to become the PI of the Rochester Intergenerational Study – a longitudinal multigenerational study of families in Rochester, NY. This multimillion dollar grant is funded by the National Institute on Drug Abuse and will move to CSU in January 2017. She also started two additional new studies, one funded by the NSF to study compliance with shelter in place orders during disasters and an internal grant funded by the Vice President for Research to develop a line of research to promote safety and health among firefighters.

Dr. Henry initiated several multiyear projects that will bring grant money into CSU for the next 3-5 years at minimum. She built many new connections that she didn’t have before, and these new connections are already yielding exciting new lines of work. The sabbatical year was invaluable in getting ready to take over the Rochester Project and in getting through the first very intensive year of the Campus Connections study. She also managed to spend one month in Costa Rica to participate in an intensive Spanish course. This has been a huge benefit to her projects that include Spanish-speaking collaborators and participants. All of the work she did to evaluate interventions in real world settings will be invaluable in the research methods and applied data analysis courses she teaches in addition to strengthening her opportunities to submit new grants and involve students in these community-based initiatives. Finally, two of the projects, the sleep study for veterans and the mentoring program, directly benefitted CSU students as they were the actual recipients of the interventions.

Christos Papadopoulos – Computer Science

Dr. Papadopoulos used his sabbatical time to strengthen current collaborations and establish new ones, especially overseas. Highlights include being a month-long guest researcher with all expenses paid in Paris, France; giving a keynote speech at NSF’s SwitchOn workshop in Brazil; establishing ties with physicists at CERN and the resulting publication of a paper and a demo at Supercomputing 2015. This work, which is based on NDN, has the potential to become the de facto software management for very large scale climate and physics datasets. Dr. Papadopoulos also used the time to put in place a new $2.7M DHS project to work on defense mechanisms for DDoS (Distributed Denial of Service) attacks, a vexing problem that is always in the top five security problems faced by network operators today.

Every time a faculty member spends a significant amount of time at other institutions, both the faculty and the institution benefit from the exposure and the exchange of ideas. Dr. Papadopoulos’ sabbatical was not an exception. His accomplishments that benefited and continue to benefit the university include: (a) a significant number of presentations at both domestic and international venues to promote his research; (b) a month long stay with all expenses paid in Paris, France, which enabled new collaborations with local researchers; (c) establishing ties with physicists at CERN, which resulted in a paper and a demo in Supercomputing 2015; (d) a visit to Crete that facilitated the recent hire of a highly qualified

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278 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item person as a Research Associate III to help with his research; (e) time at UCLA discussing NDN with local physicists and medical data managers; (f) an extended presence at ISI to strengthen existing projects and form ideas for proposals to funding agencies that resulted in a white paper to DHS with suggestions on broader real-time Internet monitoring programs; (g) research discussions at UPMC in France on vehicular communications and security, which he expects to lead to a proposal submission to NSF under the SaTC program; and (h) significant progress in the WIT project (funded by the Australian government) that resulted in the project being selected for the DHS showcase in February 2016.

Marinus Pilon – Biology

Dr. Pilon was a visiting professor at Wageningen University and Research (WUR). He gave seminars for this group and other units at the institute. During this time, collaborative studies were performed in the field of plant meta homeostasis, which has relevance to his own research program. He established a number of contacts for ongoing collaborations and acquired materials to be used both in research (seed collections) and teaching (a metabolomics module in his plant metabolism course). Most importantly, Dr. Pilon acquired valuable knowledge in the field of plant genomic research. During this time in the Netherlands, he gave seminars at the University of Utrecht, the research department of NAC-Tuinbouw in Roelofarendsveen, a quality control institute for the horticulture industry at Ruhr University in Bochum, Germany. He visited the Free University in Brussels and the University of Zurich where he gave seminars. In Switzerland, he learned about specific methods for the expression of plant membrane proteins which is of pivotal importance for his research. It is clear that the established collaborations will help further his research program at CSU. Dr. Pilon learned a lot about plants and modern cutting edge analysis methods and this will benefit research and teaching at CSU.

Elizabeth Pilon-Smits – Biology

Dr. Pilon-Smits was a visiting professor at two labs at Wageningen University and Research(WUR). She gave seminars at each of these units. During this time, several collaborative studies were performed, all in relation to her own research interest (selenium accumulation in plants). First was a metabolomics study comparing selenium hyperaccumulator and non-accumulator plant species. Second was a microbiome study comparing microbial composition of the root zone of selenium hyperaccumulator and nonaccumulator plant species. Third was a study on the effect of selenium priming of seeds on plant stress resistance. Fourth was a collaborative study on selenium biofortification of duckweed to be used as cattle feet. She also gave seminars at the University of Utrecht, at a national symposium in Lunteren (both in the Netherlands) and at Ruhr University in Bochum, Germany. She visited the Free University in Brussels where she gave a seminar and did some collaborative experiments on ethylene production by selenium hyperaccumulating and non-accumulating plant species. She visited two labs in Zurich, Switzerland and gave seminars at both institutions.

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This sabbatical yielded much new scientific knowledge that will benefit Dr. Pilon-Smits’ teaching at CSU and her students and CSU as a whole. This sabbatical also exposed her to new research strategies and cutting edge technologies, which gives her inspiration for further research and will increase the quality of her ongoing research and the quality of her research proposals, thus enhancing her chances to obtain future funding. She was able to disseminate her CSU research results in the Netherlands, Germany, Belgium, Switzerland, and France. This led to a lot of interest from scientists across Europe for collaboration.,

Grzegorz Szamel – Chemistry

Professor Grzegorz Szamel spent his sabbatical at Laboratoire Charles Coulomb of Universite de Montpellier (Montpellier, France). During this time, he collaborated with his French host on the dynamics of glassy fluids and on the static and dynamic properties of active matter. This research resulted in three publications. The investigation of the dynamics of dense active fluids is ongoing and will result in at least one more publication. In addition, discussion with Dr. Berthier inspired Dr. Szamel to investigate a general subject of linear response in active fluids. This research resulted in a preprint, which has been submitted for publication.

During his stay in Europe, Dr. Szamel gave talks at two workshops and a conference and visited two European research groups in his area of research interests in Paris and in Bristol. In addition, Dr. Szamel spent four weeks of the winter of 2016 at the School of Chemistry of the University of Sydney (Sydney, Australia). Discussions with his Australian host resulted in a project for future collaborative research on the dynamics of glassy fluids. During his stay in Sydney, Dr. Szamel gave a seminar at the School of Chemistry of the University of Sydney.

Sabbatical leave exposed Dr. Szamel to new problems in the area of glassy fluids and allowed him to start research in the new area of active matter. Furthermore, sabbatical leave allowed Dr. Szamel to disseminate results of his research among leading scientists in Europe and Australia. This exposure resulted in raising the profile of Dr. Szamel’s research. It will aid in recruiting graduate students into CSU’s program and, more generally, enhance Colorado State’s international reputation. The new concepts and methods that Dr. Szamel became familiar with will be incorporated into graduate physical chemistry courses. Simpler problems will be used as examples in undergraduate courses. The educational experience for students in these courses will be enhanced through the introduction of these new elements into the curriculum.

Vicki Volbrecht – Psychology

Fall semester was spent at the medical school of the University of California, Davis, in the Department of Ophthalmology. While there, a pilot study was undertaken to investigate the interaction between brightness, saturation, and hue in color perception. Dr. Volbrecht attended a weekly graduate seminar on the visual system and weekly laboratory meetings of the host lab. Individuals in the laboratory were involved in many different projects investigating vision from

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280 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item many different perspectives and using many different experimental techniques not used in her own laboratory. It was beneficial to learn about the many ways in which visual processing can be studied and contribute to our understanding of how vision works.

Spring semester was spent at the University of Nevada, Reno in the Department of Psychology. During that time a study was designed and conducted to examine the relationship between scaling and hue naming and potential underlying neural mechanisms mediating each. This research has been and will be presented at several professional meetings. Two articles have been submitted to Vision Research. She also started work with a group looking at some older data in the literature to see what factor analysis can tell us about individual differences in visual processing.

At each institution where she worked during the sabbatical, she gave a talk about the research conducted in her laboratory at Colorado State University, receiving helpful feedback that was incorporated into a research article submitted and published over the summer. The research that is being done in collaboration with others will show her affiliation with CSU. The seminars, lab meetings, and talks she attended at the various institutions have motivated her to think about different ways to present material to graduate and undergraduate students on sensory processing. There were also many discussions with colleagues teaching sensation and perception classes about how they present material and conduct such classes as well as suggestions regarding books to read and incorporate in the classroom. Results of these discussions will be reflected in future courses that she teaches at CSU.

Warner College of Natural Resources

Larissa Bailey – Fish, Wildlife, and Conservation Biology

A number of sabbatical activities had direct benefits to Professor Bailey and CSU’s overall programs in teaching, research, and outreach as outlined below. Dr. Bailey served as Special Visiting Researcher at three universities in Brazil where she taught workshops, advised students, and conducted fieldwork associated with ongoing studies. Prior to her visit, she hosted three Brazilian Ph.D. students at CSU, all of whom successfully defended their dissertations and now have several publications in press. She is currently collaborating on one Brazilian project, with another proposal under review. She will likely host another Brazilian student at CSU starting in 2017.

Dr. Bailey organized and co-led a team of scientists, biologists, and managers in a decision- making approach to halt or reverse amphibian declines associated with a pathogenic fungus. Despite repeated calls for this type of active management by conservation and research agencies, CSU’s is the first effort to be formally included in a species recovery plan. She contributed to a second edition of the book entitled Occupancy Estimation and Modeling and co-authored 13 publications with five more in press. Many of these publications involved CSU graduate

CSU-Fort Collins Sabbatical Summaries Page 33 of 35

281 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item students as first author. Finally, she helped develop and teach the first full semester program at CSU’s Todos Santos Center, with plans to participate in the next semester program in Spring 2017.

Michael Ronayne – Geosciences

Dr. Ronayne took sabbatical leave during the 2015-2016 academic year to further develop his research program in hydrogeology and to pursue new research in the areas of ecohydrology and groundwater-surface water management modeling. He focused in particular on the following three projects: (1) an investigation of hydrogeologic framework that affects groundwater availability and groundwater movement in the Denver Basin sandstone aquifers, along with the development/application of modeling tools to evaluate groundwater dynamics near municipal well fields; (2) an ecohydrological study of groundwater-fed wetlands in Rocky Mountain National Park; and (3) an analysis of managed aquifer recharge for augmenting summer low flows in semi-arid alluvial rivers. The first project utilized time series data to assess aquifer conditions over a 10-year period in the Denver Basin. New analytical modeling techniques were developed to facilitate this assessment. The second project was a field study that identified important relationships between vegetation community and hydrologic functioning in mountain wetlands. Project 3 considered the performance of an active recharge system along the South Platte River in Colorado. A new modeling framework was developed to quantify how the system affects seasonal groundwater-surface water exchange and streamflow.

This research resulted in new tools and improved scientific understanding relevant to important water resources issues in the State of Colorado, including the supply of non-tributary groundwater in bedrock aquifers, the sustainability of groundwater-fed wetlands in the Rocky Mountains, and the potential of groundwater recharge projects to augment streamflow. In addition to these research activities during sabbatical, Dr. Ronayne worked on the development of a new graduate-level geostatistics course. This course, which is being taught during the current fall semester, covers spatial data analysis, spatial estimation, mapping, stochastic simulation, and uncertainty analysis.

George Wittemyer – Fish, Wildlife, and Conservation Biology

During his sabbatical, Professor Wittemyer conducted field research, started several collaborative projects, recruited two new graduate students (both receiving NSF Graduate Research Fellowships) and a postdoctoral student, and published fourteen manuscripts including two first author manuscripts, one of which was in Science. In addition, he engaged in outreach through public and academic talks (four of which were invited) and numerous meetings with federal and international conservation bodies (CITES, IUCN, U.S. Fish and Wildlife Service). Outreach work also included engaging with a variety of press services which led to several large scale stories on Prof. Wittemyer’s work and Colorado State University. In particular, a full page article on his work on elephants was the feature article in the New York Times Science section in

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282 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Report Item

July. Global publicity on the published manuscript by Prof. Wittemyer in September generated the equivalent of over $500,000 in advertising (as summarized by the CSU press department) for Colorado State University and is ranked #1 in terms of press generation for the Journal of Applied Ecology.

In addition to this high level of productivity and outreach, Dr. Wittemyer engaged directly on a number of policy pieces regarding rangeland conservation, global wildlife trafficking, and elephant conservation. These efforts are putting his research at the forefront of international debates on global wildlife trade, a topic that has received an Executive Order by President Obama. Finally, he engaged directly in the development of course materials for a short course on animal movement analysis at the Smithsonian Conservation Biology Institute. The outputs for this short course are currently being infused into his senior level undergraduate course, FW477, Wildlife Habitat Use and Management. These sabbatical activities have had direct benefits to Prof. Wittemyer and CSU’s overall programs in teaching, research, and outreach.

College of Veterinary Medicine and Biomedical Sciences

Colleen Duncan – Microbiology, Immunology, and Pathology

Dr. Duncan’s sabbatical time was spent under the mentorship of Dr. Craig Stephen, the executive director of the Canadian Wildlife Health Cooperative. The decision to work with Dr. Stephen and his group was influenced by the paradigm shift that the CWHC has proposed where veterinarians transition some of their efforts from disease response to health promotion. The majority of her time was spent on research projects collaborating with both Canadian (ex. The Public Health Agency of Canada, Parks Canada) and American (ex. National Park Service, United States Geological Survey) agencies on issues related to health (animal and human) in the face of our changing environment. She also participated in a number of relevant conferences and workshops and spent a month as part of an NSF funded ‘scientist in residence’ program focusing on science communication with emphasis on health and disease.

The opportunities afforded during Dr. Duncan’s sabbatical were enlightening both personally and professionally. Many of the projects she was involved in are related to a topic of interest to the CSU community that is coming together under the ‘One Health’ umbrella. As a result of her experiences of the year, her research, teaching, and service portfolio has been expanded and she feels she may be better able to contribute to this mission. Numerous research ideas that arose over the year have been developed into grant proposals, and funded awards in areas that would have been outside her comfort zone twelve months ago. Dr. Duncan has developed two new courses (Healthy Parks Healthy People and Global Sustainability and Health) that will be available to CSU students in January 2017. Finally, and perhaps most profoundly and unexpectedly, the year of working with different people, in different environments, prompted reflection on all aspects of her CSU work and a better awareness of the type of work, the work environment, and the type of team she is best able to contribute to.

CSU-Fort Collins Sabbatical Summaries Page 35 of 35

283 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

2016-17 Academic Faculty and Administrative Professional Manual Revisions: Sections D.3.6 Responsibilities for Ensuring Nondiscrimination Practices; D.5.1 Nondiscrimination and Affirmative Action; Appendix 1: Discrimination, Harassment, Sexual Harassment, Sexual Misconduct, Domestic Violence, Dating Violence, Stalking, and Retaliation

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the proposed revisions to the Colorado State University Academic Faculty and Administrative Professional Manual, Sections D.3.6 Responsibilities for Ensuring Nondiscrimination Practices; D.5.1 Nondiscrimination and Affirmative Action; Appendix 1: Discrimination, Harassment, Sexual Harassment, Sexual Misconduct, Domestic Violence, Dating Violence, Stalking, and Retaliation

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President.

The proposed revision for the 2016-2017 edition of the Colorado State University Academic Faculty and Administrative Professional Manual has been adopted by the Colorado State University Faculty Council. A brief explanation for the revision follows:

The language in the Manual needs to be brought into alignment with Federal law. The proposed changes do this. The primary changes add pregnancy and discussion of pay as items that cannot be discriminated against. Several small editorial changes are also included.

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

284 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

NOTE: Revisions are noted in the following manner: Additions - underlined Deletions - overscored

ACADEMIC FACULTY AND ADMINISTRATIVE PROFESSIONAL MANUAL REVISIONS AND ADDITIONS – 2016-17

D.3.6 Responsibilities for Ensuring Nondiscrimination Practices (last revised June 21, 2011)

Any faculty member or administrative professional who encounters acts of discrimination because of race, age, color, creed, religion, national origin or ancestry, sex, gender, disability, veteran status, genetic information, sexual orientation, or gender identity or expression, or pregnancy, or because a person has inquired about, discussed, or disclosed their own pay or the pay of another employee or applicant, either on or off campus, is urged to report such incident to the University by completing a simple form available for that purpose from the Office of Equal Opportunity (OEO).

D.5.1 Policy: Nondiscrimination and Affirmative Action (last revised June 21, 2011)

Colorado State University does not discriminate on the basis of race, age, color, creed, religion, national origin or ancestry, sex, gender, disability, veteran status, genetic information, sexual orientation, or gender identity or expression, or pregnancy, and will not discharge or in any other manner discriminate against employees or applicants because they have inquired about, discussed, or disclosed their own pay or the pay of another employee or applicant. The University complies with the Civil Rights Act of 1964, related Executive Orders 11246 and 11375, Title IX of the Education Amendments Act of 1972, Sections 503 and 504 of the Rehabilitation Act of 1973, Section 402 of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Americans with Disabilities Act (ADA) of 1990, the Civil Rights Act of 1991, the ADA Amendments Act of 2008, the Genetic Information Nondiscrimination Act of 2008, and all civil rights laws of the State of Colorado. Accordingly, equal opportunity of employment and admission shall be extended to all persons. The and the University shall promote equal opportunity and treatment in employment through a positive and continuing affirmative action program for ethnic minorities, women, persons with disabilities, and veterans. The OEO Office of Equal Opportunity is located in 101 Student Services.

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

285 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

APPENDIX 1: Discrimination, Harassment, Sexual Harassment, Sexual Misconduct, Domestic Violence, Dating Violence, Stalking, and Retaliation (last revised August 7, 2015)

Purpose of Policy Colorado State University is committed to providing an environment that respects the dignity and worth of every member of its community. The University strives to create and maintain a work and study environment that is fair, inclusive, and responsible so that each member of the University community is treated with dignity and respect and is rewarded for relevant considerations such as ability and performance. The purpose of this policy is to define the types of conduct that are prohibited by the University as a means of achieving these goals and to prevent harm arising from discrimination, harassment, sexual harassment, sexual misconduct, domestic violence, dating violence, stalking and retaliation.

Colorado State University is committed to providing an environment that is free from discrimination and harassment based on race, age, creed, color, religion, national origin or ancestry, sex, gender, disability, veteran status, genetic information, sexual orientation, gender identity or expression, or pregnancy, and will not discharge or in any other manner discriminate against employees or applicants because they have inquired about, discussed, or disclosed their own pay or the pay of another employee or applicant. e. Discrimination is conduct that is based upon an individual’s race, age, creed, color, religion, national origin or ancestry, ancestry, sex, gender, disability, veteran status, genetic information, sexual orientation, gender identity or expression, or pregnancy, or because they have inquired about, discussed, or disclosed their own pay or the pay of another employee or applicant, and that (a) excludes an individual from participation in, (b) denies the individual the benefits of, (c) treats the individual differently from others in, or (d) otherwise adversely affects a term or condition of an individual’s employment, education, living environment or University program or activity. It is unlawful discrimination for an employer to refuse to hire, to discharge, to promote or demote, to harass during the course of employment, or to discriminate in matters of compensation, terms, conditions, or privileges of employment against any person otherwise qualified because of any of these factors. This includes failing to provide reasonable accommodation, consistent with state and federal law, to persons with disabilities. g. Harassment covered under this policy is conduct that demonstrates hostility towards a person (or a group of persons) based upon that person’s race, age, creed, color, religion, national origin or ancestry, ancestry, sex, gender, disability, veteran status, genetic information, sexual orientation, gender identity or expression, or pregnancy, or because they have inquired about, discussed, or disclosed their own pay or the pay of another employee or applicant and has the purpose or effect of:

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

286 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

Statement of Policy Principles It is the policy of Colorado State University to maintain an academic and work environment free of discrimination, harassment, sexual harassment, sexual misconduct, domestic violence, dating violence, stalking and retaliation for students, faculty, and employees. Such conduct is contrary to the standards of the University community and common decency. It diminishes individual dignity, impedes equal employment and educational opportunities and equal access to freedom of academic inquiry, and creates barriers to fulfilling the University’s scholarly, research, educational, and service missions. Such conduct will not be tolerated at the University.

Discrimination, harassment, sexual harassment, sexual misconduct, domestic violence, dating violence, stalking and retaliation also are illegal; they are prohibited in the employment context by Title VII of the 1964 Civil Rights Act, in the education context by Title IX of the Educational Amendments of 1972, and, in both employment and education contexts, by Colorado’s anti-discrimination laws, including, but not limited to, C.R.S. §24-34-401, et seq. Such conduct also can violate federal and state criminal laws.

Colorado State University does not discriminate on the basis of race, age, creed, color, religion, national origin or ancestry, sex, gender, disability, veteran status, genetic information, sexual orientation, gender identity or expression, and or pregnancy, and will not discharge or in any other manner discriminate against employees or applicants because they have inquired about, discussed, or disclosed their own pay or the pay of another employee or applicant. The University complies with the Civil Rights Act of 1964, as amended, related Executive Orders 11246 and 11375, Title IX of the Education Amendments Act of 1972, Sections 503 and 504 of the Rehabilitation Act of 1973, Section 402 of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, the Age Discrimination in Employment Act of 1967, as amended, The Pregnancy Discrimination Act of 1978, Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the ADA Amendments Act of 2008, the Genetic Information Nondiscrimination Act of 2008, and all civil rights laws of the State of Colorado. Accordingly, equal opportunity of employment and admission shall be extended to all persons. The University shall promote equal opportunity and treatment in employment through a positive and continuing affirmative action program for ethnic minorities, women, persons with disabilities, and veterans.

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

287 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

2016-17 Academic Faculty and Administrative Professional Manual Revisions: Section I.11 – Students Called to Active Duty

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the proposed revisions to the Colorado State University Academic Faculty and Administrative Professional Manual, Section I.11 – Students Called to Active Duty

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President.

The proposed revisions reflect the current process that CSU follows to assist students called to active duty. Assistance is provided by the Adult Learner and Veteran Services office, not by CASA.

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Section I.11

288 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

NOTE: Revisions are noted in the following manner: Additions - underlined Deletions - overscored

ACADEMIC FACULTY AND ADMINISTRATIVE PROFESSIONAL MANUAL REVISIONS AND ADDITIONS – 2016-17

I.11 Students Called to Active Duty (last revised May 5, 2005)

In response to military action declared by the President of the United States or Congress in which United States forces are being called into active duty, the University shall apply this policy for the duration of such actions, and the Adult Learner and Veterans Services (ALVS) Center for Advising and Student Achievement (CASA) shall execute it.

Any student called to active military duty should visit ALVS for consultation. may, upon presentation of a copy of his or her orders to CASA, be given a grade of Incomplete in courses for which she/he is registered. The student or his or her designate may make this request in person, by letter, or by telephone. However, the request will not be processed by CASA until a copy of the orders are received. The ALVSCASA advisors will counsel with the student or his or her designate and the student’s instructors to select the option (either withdrawal from the University, cancellation of courses, or taking of an Incomplete) that is most appropriate to that student’s situation. (Note: The ALVSCASA cannot disclose personally identifiable educational information with a third party, even a spouse or other designee, without a signed FERPA Release Form. The FERPA Release Form authorizes ALVSCASA to disclose the student’s educational information to his or her designee. (See Section I.2.). Additional details are provided in the General Catalog section on University Withdrawal for Call to Active Duty (http://catalog.colostate.edu/general-catalog/academic-standards/registration/#university- withdrawal).

If the student chooses to withdraw from the University as a result of an undetermined amount of time required away from his or her studies during military service, the tuition paid for the semester will be refunded. If the student opts for a grade of Incomplete for the course, tuition will not be refunded. The grade of Incomplete shall remain on the student’s record for a period not to exceed one year following the end of the semester in which the student re-enrolls at Colorado State University. By this date, the grade will be changed by the instructor or department head of record, or it will convert to a grade of “F.” It will be the responsibility of ALVSCASA personnel to track these students and to keep the Office of the Registrar notified of the status of these students, since the time period for which the grade of Incomplete may remain on the record may vary from the normal University time limits for resolution of grades of Incomplete.

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Section I.11

289

Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR CONSENT:

2016-2017 Faculty Handbook revision – section 1.2.5.5

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the proposed revision to the Colorado State University-Pueblo Faculty Handbook, section 1.2.5.5.

EXPLANATION:

Presented by Rick Kreminski, Provost and Executive Vice President for Academic Affairs, CSU-Pueblo.

INTRODUCTION

The proposed revisions for the 2016-2017 edition of the CSU-Pueblo Faculty Handbook has been adopted by the CSU-Pueblo Faculty Senate on September 19, 2016. The request affects one ex officio member of the Scholarly Activities Board, namely to replace the title Director with Representative, and to have that individual be a non-voting member of the Scholarly Activities Board.

NOTE: Revisions are noted in the following manner: Additions – underlined Deletions – strikethrough

1.2.5.5 Scholarly Activities Board (revised September 2012; July 2013) a. Purpose: To promote an environment of research, scholarship, and creativity by advising the Provost and Faculty Senate on the development and implementation of policies and procedures involving research and scholarly and creative activities. b. Membership:

Director of the Office of Research and Sponsored Programs (ex-officio).1. Director of the Office of Research and Sponsored Programs (ex-officio).Director Representative of the Office of Research and Sponsored Programs (ex- officio, non-voting)

2. One college Dean (appointed by the Provost). 3. One ranked academic faculty member from each electing unit (appointed by their respective Dean). 4. One ranked academic faculty member (elected by Faculty Senate). CSU-Pueblo Approval of 2016-2017 Faculty Handbook revision February 2017 page 1 of 2

290

5. One faculty senator (elected by Faculty Senate) to serve as a liaison to Faculty Senate. The term of office of the senator representing to Faculty Senate shall be for one-year. c. Duties/Procedures: 1. Convened by the Chair as needed but not fewer than four (4) times each semester and otherwise as needed. 2. Recommends budget and priorities for internal support of research and scholarly and creative activities. 3. Recommends policies, procedures, and guidelines for applications for funded grant activities. 4. Monitors implementation of policies and procedures for award of applicable internal grants for faculty and students.

CSU-Pueblo Approval of 2016-2017 Faculty Handbook revision February 2017 page 2 of 2

291

Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Report Item

MATTERS FOR ACTION:

Report on CSU-Pueblo sabbatical and educational leaves completed in AY2015-2016. No action required -- report only.

EXPLANATION:

Presented by Rick Kreminski, Provost and Executive Vice President for Academic Affairs.

This report provides summaries of the sabbaticals completed during the 2015-2016 academic year.

REPORT ON APPROVED SABBATICAL LEAVES FOR AY2016-2017

As described in material presented most recently at the December 2016 meeting of the CSU System Board of Governors, per section 2.11.2 (Sabbatical Leaves) of the CSU-Pueblo Faculty Handbook, “The purpose of sabbatical leave is to provide tenure contract faculty an opportunity to engage in research, scholarly or creative activity, or otherwise enhance professional stature as teachers and scholars.” 2.11.2.2.i states in part that “Sabbatical leaves will be granted on the merits of the faculty member's application, the availability of funds, and institutional priorities… Faculty members must demonstrate in writing, as part of their application, a well-structured plan involving research, scholarly or creative activity, study for advanced degrees outside their primary discipline, or other activities which will result in the faculty member’s professional growth, increase the overall level of knowledge in the leave holder’s area of expertise, and enhance the institution’s reputation, and the students’ educational experience.”

Per section 2.11.2.4 of the CSU-Pueblo Faculty Handbook, faculty who received sabbatical leave submit a final report within three months of the end of the sabbatical period to their department chair (who forwards it to the respective Dean and Provost), which includes a summary of activities undertaken and benefits accrued. Similarly, section 2.11.3 of the CSU-Pueblo Faculty Handbook on Educational Leaves describes how “Enhancement Leaves are for the purpose of providing probationary and tenured faculty the opportunity to participate in educational activities or programs which will enhance their credentials, knowledge, or reputation. 2.11.3.2c. states “All faculty members returning from educational leave must submit to the Provost, with copies to the Dean and Department Chair, a written report on the results of the leave within two (2) months of return.” While such leaves are leaves-without-pay and thus no costs are incurred, they provide important experiences for faculty in their professional development.

Below are summaries of 12 sabbatical reports and a summary of one report for Enhancement Leave.

CSU-Pueblo AY2015-2016 sabbatical leave report page 1 of 6 292

Dr. Ahmad Ahmadian, Professor, Business Management

Dr. Ahmadian’s spring 2016 sabbatical included gathering and reviewing literature related to the Chinese auto industry and corporate social responsibilities. He developed two presentations for the Clute Institute’s 2016 International Academic Conference on Business in Las Vegas, NV (“What does it take for China auto industry to be a global leader and how GM and Ford could benefit from China’s success?”, and “Corporate social responsibility: past, present and success strategy for the future”; the latter was deemed a Best Presentation Award winner by peer review at the conference). These were also to be developed for publication in refereed journals.

Dr. Sandra Bonetti, Professor, Chemistry

Dr. Bonetti’s year-long sabbatical included learning new research techniques in molecular biology, proteomics, and biochemical instrumental analysis. As a result of the sabbatical, academic contributions include four presentations, three grant proposals, and the basis for two master’s degrees and one doctoral degree. Three manuscripts for journal publication are in progress. More specifically, Dr. Bonetti examined biomass converting enzymes (cellulose and chitinase). She incorporated newly acquired instruments in her work, including a multimode microplate reader, a 2D electrophoresis unit, and a high performance chromatography system – and expertise in use of such instruments was passed on to her graduate students. She continued her work on cloning of the Penicllium cellulase in collaboration with a biology colleague. Finding optimal cellulose enzymes can be beneficial to reducing landfill volume, and potentially converting such wastes into feedstocks for biofuel production. She also continued work on selenium bioavailability, in collaboration with Dr. Debbie Crans at CSU and James Carsella, a PhD student at CSU who works at CSU-Pueblo. This work involves studying the uptake of selenium by certain plants for possible phytoremediation, whether for terrestrial selenium or aquatic selenium that can be toxic to fish. The studies of bryophyte uptake led to two presentations, one at a national American Chemical Society meeting and one at Fort Collins. This work will likely lead to two publications. Dr. Bonetti also submitted a grant proposal to the National Science Foundation. She also continued to serve the American Chemical Society (ACS), as a Councilor and Executive Committee member for the Colorado Local Section, including representing the state at the national ACS level.

Dr. Juyun (Joey) Cho, Associate Professor, Computer Information Systems

Dr. Cho’s spring sabbatical was spent at the College of Business of Chungnam National University (CNU) in South Korea. He conducted research with faculty on big data analysis using data mining, and an article was submitted to the Journal of International Technology and Information Management for publication. He also presented his work on agile software development in a seminar at CNU. Dr. Cho also worked to enhance ties between CNU and the Hasan School of Business at CSU-Pueblo, initiating a meeting with deans and staff of both institutions. (Ultimately a Memoranda of Agreement was signed between CSU-Pueblo and CNU, and an MOU for dual degree programs was under development.)

CSU-Pueblo AY2015-2016 sabbatical leave report page 2 of 6 293

Dr. Kevin Duncan, Professor, Economics

Dr. Duncan’s spring sabbatical project examined the economic impact of state level prevailing wage laws. Work related to this study was used in the legislative sessions in New Hampshire (testimony on House Bill 1641, An act relative to requiring prevailing wages on state-funded public works projects, for the Labor, Industrial and Rehabilitative Services Committee, in January 2016) and New Mexico (an economic policy brief was circulated to members of the NM legislature). Dr. Duncan also worked on a white paper examining the effect of prevailing wage laws on military veterans employed in the construction industry, presenting this work before the Associated Construction Contractors of New Jersey. He had a publication, “The release of Davis-Bacon certified payroll records, exemption 4 of the Freedom of Information Act, and the question of competitive harm to contracts”, accepted in the Labor Law Journal. Several other submissions for journal publication were also being prepared during the sabbatical. He presented “The economic and fiscal impacts of prevailing wages laws” in March to the Associated Construction Contractors of New Jersey. Subsequent to the sabbatical, Dr. Duncan was a visiting scholar at the Institute for Research on Labor and Employment at the University of California at Berkeley.

Dr. Karen Fowler, Professor, Management

Dr. Fowler’s fall sabbatical included examining crisis and disaster preparedness on university campuses in the US. After developing an instrument to survey perceptions of preparedness and making improvements after pilot-testing, preliminary results were shared at a meeting of the Southeast Decision Sciences Institute Conference, and published in the refereed Proceedings. The results from one subsequent survey of all faculty and staff at one university were presented and subsequently published in the Proceedings of the Western Decision Sciences Institute Conference. One finding was that both trained and untrained respondents indicated a belief that a disaster on campus was very likely, if not a certainty. Trainings was shown to be effective for helping employees to feel safer and more confident regarding potential disasters. Dr. Fowler also organized a special session, “Crisis and disaster preparedness on university and college campuses: an open session discussion” at the latter conference on this topic. Subsequent to the sabbatical, a manuscript was being revised for submission to a journal.

Dr. Darren Funk-Neubauer, Associate Professor, Mathematics

Dr. Neubauer’s fall sabbatical included collaboration with his former advisor, Dr. Paul Terwilliger, at the University of Wisconsin – Madison. He attended research seminars, spoke with current PhD students, and gave a lecture on his work. Near the end of his visit, Dr. Neubauer and Dr. Terwilliger were able to connect their current research projects, which should result in two subsequent publications. He also participated in a professional development activity, as a grader for the Advanced Placement Calculus exam in Kansas City (which included professional development workshops).

CSU-Pueblo AY2015-2016 sabbatical leave report page 3 of 6 294

Dr. Brad Gilbreath, Professor, Business Management

Dr. Gilbreath collaborated with numerous faculty from around the world and prepared drafts and submitted articles to various journals for publication during his fall sabbatical. In particular, he coauthored a draft article (related to self-verification theory and emotional labor) with Dr. Tae- Yeol Kim at the China Europe International Business School, which was submitted to the journal Human Relations. He collaborated with Professor Cynthia Mathieu at the Université de Québec à Trois-Rivières, who had developed a draft manuscript based on a dataset similar to what Dr. Gilbreath had originally planned to prepare. This has resulted in a draft submission for publication (related to presenteeism). Dr. Gilbreath attended a professional development workshop at the Academy of Management and was encouraged by feedback there from an expert in attribution theory to submit another article for publication (tentatively to Leadership Quarterly). Dr. Gilbreath also redesigned one of his courses, Mgmt 318 (Human Resource Management), and developed a new MBA course (Health, Safety and Security). In summary, three articles were prepared for research journals, and two courses were (re)designed.

Dr. Tim McGettigan, Professor, Sociology

Dr. McGettigan’s sabbatical in fall 2015 produced several results. Dr. McGettigan’s Fulbright Specialist Award at Mahidol University in Bangkok, Thailand included assisting with their Department of Society and Health’s 2015 International Conference, and providing multiple presentations at various campus fora (two public lectures and three graduate research seminar talks). He also completed, and subsequently published, the book A formula for eradicating racism: debunking white supremacy, co-authored with Professor Earl Smith, Emeritus Professor, Wake Forest University (Palgrave Macmillan). He also had numerous other activities in progress (a book chapter, an article, and another book project).

Dr. Fawn-Amber Montoya, Associate Professor, History

Dr. Montoya’s sabbatical in spring 2016 included drafting chapters for book projects (Blood on the Ground, about the Ludlow Massacre Memorial, addressing the question of what does it mean for historians to live and work in the same spaces as the history they study and their families have been part of; and Ghosts of the Past, intended as a reader for Chicano Studies courses). She revised a book manuscript, Practicing Oral History to Connect University to Community, set for publication by Routledge Press. She also coordinated and facilitated community meetings every two weeks for three months at the El Pueblo History Museum, collecting oral interviews of residents of Salt Creek, excerpts of which were used in a museum exhibit. Dr. Montoya also gave a presentation on Latino miners in southern Colorado at the University of Northern Colorado.

CSU-Pueblo AY2015-2016 sabbatical leave report page 4 of 6 295

Dr. Sue Pettit, Associate Professor, Teacher Education

Dr. Pettit’s sabbatical in spring 2016 included professional activities as state president of DKG. (The Delta Kappa Gamma society is an international professional honor society of women educators, with members in the US, Canada, Japan and 14 other countries. There are approximately 700 members in Colorado. Dr. Pettit also serves on DKG’s International Executive Board.) Activities included planning and directing a statewide Executive Board meeting and a Leadership Conference, and preparation for the Convention in June 2017. She also participated in a leadership management training program at the University of Texas, a 60 hour course with 30 other women participants from around the world. Dr. Pettit is working on plans for collaboration with one of the participants, from Puebla, Mexico. She also submitted an article to the KDG Journal, on “Preparing teacher preparation candidates for co-teaching” (to better prepare early teaching candidates for co-teaching and collaborating with other teachers in inclusive learning environments).

Dr. Chris Picicci, Associate Professor, English and Foreign Languages

During Dr. Picicci’s fall 2015 sabbatical he completed an article “The figurative arts, music, and film for Boiardo, Ariosto, and Tasso” and submitted it to the Modern Language Association’s Approaches to Teaching the Orlando Furioso and the Italian Romance Epic volume. He also wrote an essay on Machiavelli’s La Mandragola, submitted to the Italian literature section in the Literary Encyclopedia. Dr. Picicci serves as Editorial Advisor for Layman Poupard Publishing and Cengage Learning (for entries on Alonso de Ercilla y Zuniga and Torquato Tasso, and a volume on Italian Epic Poetry and Giambattista Marino). He also was selected to write a book review on Rivoletti’s Ariosto e l’ironia della finzione: La ricerca letteraria e figurative dell’Orlando furioso in Francia, Germania e Italia. Dr. Picicci also collaborated with the American Association of Teachers of Italian (AATI) Naples, Italy Conference Committee, as co- organizer of this international conference. He also attended and presented at the American Council on the Teaching of Foreign Languages annual conference in San Diego.

Dr. Christine Rochester, Associate Professor, Exercise Science, Health Promotion and Recreation

Dr. Rochester’s spring 2016 sabbatical involved a research project in the local schools, including developing curriculum that is now being implemented. She coauthored an article with Dr. Larry Nelson which was accepted for publication, based on work in the Pueblo schools related to the Bicycling to Responsibility program. The sabbatical included developing a bicycling curriculum for the schools; implementing the bicycling education program; providing professional development for teachers; and obtaining and analyzing data. The project was implemented at three local schools for students aged 9-14 (one school has special education students using

CSU-Pueblo AY2015-2016 sabbatical leave report page 5 of 6 296

tricycles). As a result of this project, pre-service physical education teachers, and teachers within the schools, teach biking as part of their curriculum.

Dr. Kristy Proctor, Professor, Chemistry

Dr. Proctor was on Enhancement Leave for the 2015-2016 academic year. During that time she served as a Distinguished Visiting Professor at the US Air Force Academy (USAFA); the full cost of her salary was funded by the USAFA through an intergovernmental personnel agreement provided through the US Office of Personnel Management’s Personnel Mobility Program. (This was the second time that Dr. Proctor was invited to participate as a distinguished faculty member at the USAFA). She collaborated with faculty as a mentor to the 31 faculty in the department (including 11 junior military faculty), and as advisor to the course directors for the 100-level chemistry course taken by all freshman cadets; engaged in curriculum development to study a flipped classroom model for that course; and assisted with curriculum evaluation and changes to required, and elective, courses within the chemistry major, as well as the chemistry core courses taken by all cadets. She served as an advisor for the research-active faculty, as they developed a lab-based research experience for undergraduate chemistry majors, given their highly constrained time. Dr. Proctor also assisted in administrative matters both within the department and with the institution as a whole (providing some IPEDS-related data analysis), and served on the Faculty Council, advising faculty leadership as that group transitioned to a faculty senate with voting rights, responsibilities and privileges.

CSU-Pueblo AY2015-2016 sabbatical leave report page 6 of 6 297

Accreditation Overview 298 What is Accreditation In most countries, education and higher education institutions typically report to a Federal Ministry of Education. All presidents/chancellors are hired by the Minister. The governing mechanisms are more tightly controlled by State policy and regulation. In the United States, our decentralized system has evolved so that public higher ed institutions generally reports to appointed or elected Boards (like our Board of Governors) and regulation is more lightly applied by the federal / state government. Assurance of quality rests on a system of accreditation.

2 Source: Council for Higher Education Association 299 In the US, accreditation is the mechanism to assure quality. It is a voluntary process carried out by private, non- profit organizations as opposed to governmental agencies like a Ministry of Education  Universities come together to form these orgs and set expectations for providing evidence of quality  Pros: expectations can be properly tuned to the role and mission of the institution; reviews are done by peers who understand the sector; peers have a natural interest in quality of their competitors (transfer students, etc.)  Cons: decentralized system can be criticized for their flexible standards; reluctance of peers to be very harsh when serious problems are detected;

multiple accreditations may be confusing to3 Source: Councilstudents for Higher Education Association 300 Two-Fold Purpose of Accreditation

 Accountability  Assurance of acceptable institutional quality  Evidence that federal student financial aid funds purchase quality courses and programs  Common understanding and acceptance of credits and degrees  Improvement  Impetus for introspection and planning for continuous quality improvement  Provides feedback and consultation from persons from other similar institutions

4 301 Basic principles

 Institutions have primary responsibility and authority for academic quality

 Institutional mission is central to all judgments of academic quality

 Institutional autonomy is essential to sustaining and enhancing academic quality

 Higher education and society thrive on decentralization and diversity of institutional purpose and mission

 Academic freedom flourishes only in an environment of academic leadership

5 Source: Council for Higher Education Association 302 Types of Accreditation

 Institutional  Regional (7) – This is CSU’s primary one  National Career-Related (7)  National Faith-Related (4)  Specialized (67)  More for discipline-specific programs

6 303 CSU Institutional Accreditation

 Higher Learning Commission (HLC)  HLC accredits and membership IHEs in Arkansas, Arizona, Colorado, Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, North Dakota, Nebraska, Ohio, Oklahoma, New Mexico, South Dakota, Wisconsin, West Virginia, and Wyoming  HLC is recognized by both the U.S. Department of Education and the Council on Higher Education Accreditation (CHEA)

7 304 Higher Learning Commission (HLC) Guiding Values

 Focus on student learning outcomes (more now than ever)

 Education as a public purpose

 Education for a diverse, technological, globally connected world

 A culture of continuous improvement

 Evidence-based institutional learning

 Integrity, transparency, and ethical behavior or practice

 Governance for the well-being of the institution

 Planning and management of resources to ensure sustainability

 Mission-centered evaluation

 Accreditation through peer review

https://hlcommission.org/Criteria-Eligibility-and-Candidacy/guiding-values.html 305 The HLC Re-Affirmation Process

 Annual updates to HLC of basic institutional information  Periodic updates to provide evidence of quality improvement  Culminating self-study 306 Re-Affirmation Self-Study Process (about a two year process)

 Working groups are identified and address subsections of the study  HLC assigns a review team and visit dates  Self-study is completed  Review team visits  Draft report is provided for institutional review and correction of matters of fact  Final report and recommendation regarding re- accreditation is submitted to the HLC Institutional Actions Council (IAC)  Institutions are notified of the action taken by the IAC 307 Components of a Self-Study

Criteria Assumed Practices Federal Compliance 308 Federal Compliance

 Assignment of Credits, Program Length, and Tuition

 Institutional Records of Student Complaints

 Publication of Transfer Policies

 Practices for Verification of Student Identity

 Title IV Program Responsibilities

 Required Information for Students and the Public

 Advertising and Recruiting Materials and Other Public Information

 Review of Student Outcome Data

 Standing with State and Other Accrediting Agencies

 Public Notification of Opportunity to Comment 309 Assumed Practices

 Generally matters to be determined as facts, rather than matters requiring professional judgment

 Unlikely to vary by institutional mission or context

 An institution seeking initial accreditation must explicitly demonstrate conformity with these Practices

 Minimum expectations - Five Criteria Areas:

 Mission

 Integrity: Ethical and Responsible Conduct

 Teaching and Learning: Quality, Resources, and Support

 EG: faculty credentials

 Teaching and Learning: Evaluation and Improvement

 Resources, Planning, and Institutional Effectiveness

http://policy.hlcommission.org/Policies/assumed-practices.html 310 Criteria and Components

 Designed to seek evidence of continual improvement and aspiration on the part of member institutions rather than to define minimum qualifications.

 The distinctiveness of an institution’s mission may condition the strategies it adopts and the evidence it provides that it meets the Criteria.

 Mission

 Integrity: Ethical and Responsible Conduct

 Teaching and Learning: Quality, Resources, and Support

 Teaching and Learning: Evaluation and Improvement

 Resources, Planning, and Institutional Effectiveness 311 Examples of the difference; Teaching and Learning, Eval/Improvement Assumed Practices:

 Instructors have the authority for the assignment of grades.

 The institution refrains from the transcription of credit from other institutions or providers that it will not apply to its own programs.

 The institution has formal and current written agreements for managing any internships and clinical placements included in its programs.

 A predominantly or solely single-purpose institution in fields that require licensure for practice is also accredited by or is actively in the process of applying to a recognized specialized accrediting agency for each field, if such agency exists.

 Instructors communicate course requirements to students in writing and in a timely manner.

 Institutional data on assessment of student learning are accurate and address the full range of students who enroll.

 Institutional data on student retention, persistence, and completion are accurate and address the full range of students who enroll. 312 Examples of the difference; Teaching and Learning, Eval/Improvement Criteria:

 The institution demonstrates responsibility for the quality of its educational programs

 EG: regular program reviews  The institution demonstrates a commitment to educational achievement and improvement through ongoing assessment of student learning

 EG: articulated goals for student learning and effective assessment processes  The institution demonstrates a commitment to educational improvement through ongoing attention to retention, persistence, and completion rates in its degree and certificate programs

 EG: institution collects, analyzes data and makes improvements based on the analyses 313 Institutional Accreditation Status Update

Next Reaffirmation in AY20

Next Reaffirmation in AY17 (February 2017)

Next Reaffirmation in AY24 314 What if Re-Affirmation is not Granted?

 The quality of the institution is generally viewed as sub-par having failed to agreed-upon meet thresholds

 The value of the degree is diminished in the eyes of employers

 Degrees/credits have a high likelihood of not transferring to accredited institutions

 Alumni giving may decline

 The institution may face financial consequences that force closure

 University of Louisville December 2016: Southern Association of Colleges and Schools (SACS) put them on probation: Governor dissolved the Board, moved to appoint his own 315 Specialized Accreditation

 In addition to regional accreditation through HLC, many programs of study in the CSU System maintain specialized accreditation.  Discipline specific  Give students and employers added confidence in the degree because it meets quality thresholds of professional organizations 316 CSU Specialized Accreditation

Fort Collins Pueblo Global Business Athletic Training Business Engineering Engineering Project Management (in Construction Management Education process) Education Nursing Information Technology (in Environmental Health Social Work process) Food Science and Nutrition Music Forestry Chemistry Human Development Business Interior Design Journalism Landscape Architecture Management Music Occupational Therapy Psychology Ecology Social Work Veterinary Medicine

http://webcms.colostate.edu/accreditation/media/sites/67/2015/08/academic-specialized-accreditation.pdf

https://www.csupueblo.edu/accreditation/_doc/standing-with-accrediting-bodies-program-specific.pdf

https://csuglobal.edu/about/csu-global-difference/accreditation 317 Business Accreditation – AACSB & ACBSP

 ACBSP: Accreditation Council for Business Schools and Programs  In 2013 CSU-Global conducted a vetting of all three business accreditors(AACSB, ACBSP, IACBE) to determine the best match for the CSU-Global mission - ACBSP was chosen as it:  Has a primary focus on teaching excellence and student learning  Values our practitioner faculty by encouraging faculty involvement within the contemporary business world  Recognizes that institutions need to find a balance between teaching and research  Uses a continuous improvement process based on the Baldridge Excellence Framework  AACSB: Assoc. to Advance Collegiate Schools of Business  Accredits Business Schools primarily for R1/R2 institutions; significant expectations for research productivity 318 Questions? Comments?

References: Higher Learning Commission: http://www.hlcommission.org/

Council for Higher Education Accreditation: http://www.chea.org/

Association of Governing Boards: http://www.agb.org http://www.agb.org/trusteeship/2013/11/changing- role-accreditation-should-it-matter-governing-boards http://www.agb.org/podcasts-video/accreditation- with-judith-eaton 319 320

The Changing Role of Accreditation: Should It Matter to Governing Boards? By Judith S. Eaton November/December 2013

321

Takeaways

Accreditation is changing in three major ways. It has become more visible, inviting additional public scrutiny and attention. It is increasingly government controlled, serving more and more as an instrument of government policy. And it is being challenged to respond to the latest wave of innovation in higher education.

Accreditation has had little competition—until recently. Today, students and the public have many options for judging a college or university, and boards must anticipate how such second opinions about quality affect board decision making.

New and emerging demands will require boards to spend more time on—and have a deeper understanding of—accreditation issues as they relate to their particular institutions.

Accreditation's role is changing in ways that will affect governing boards, as the institutions they oversee face new types of campus reviews. Accreditation will take more time and attention in the future. It will be more demanding. In some ways, accreditation will involve greater risk.

Governing boards are usually somewhat familiar with accreditation, typically because members have been engaged in some way with a campus accreditation review—a process that takes place every several years, whether at the institutional or programmatic level. Boards know that maintaining accredited status is necessary for their institutions to be eligible for federal funds, student grants and loans, and research or program money. They are aware that the absence of accreditation is problematic. Because accreditation is higher education’s primary means to assure and improve the quality of colleges, universities, and programs, boards know that accreditation is, in many circumstances, essential.

Three particular changes, however, are affecting accreditation’s role today. First, accreditation has become more visible, inviting additional public scrutiny and attention. Second, accreditation is increasingly government-controlled, serving more and more as an instrument of government policy and making accreditors, increasingly, actors in the political world. This has rendered accreditation more vulnerable to government directives and left accreditors less in charge of their own operations in dealing with accredited colleges and universities. Third, accreditation is being challenged to respond to the latest wave of innovation in higher education, just as institutions are. That carries significant implications for both campuses and accreditors regarding the mission, programming, and positioning of colleges and universities.

All of this means that, going forward, boards will need to anticipate and address intensified scrutiny by the press and social media concerning accreditors’ procedures and decision making. They will need to comply with the growing government demands that accreditors are obligated to enforce, and they must understand the impact of greater federal direction on how they make their own decisions. Boards must also understand the pressures for educational innovation and grapple with the implications of such innovation for their institutions’ ongoing operations and for what constitutes “quality” in this new environment.

ACCREDITATION AND GREATER VISIBILITY

The past several years have seen growing criticism of higher education’s cost and the less-than-impressive graduation rates at some institutions. Accreditors have been charged with, among other things, not being 322

tough enough on institutions and for concerning themselves with detailed requirements that may not be related to how much students actually are learning and whether they persist to earn their degrees. Accreditation’s visibility has grown as accreditors have responded to critics’ calls for greater public accountability and transparency in their operations. In turn, as their work has become more and more public, it has drawn increasing comment and criticism in the press, including social media.

The growing press attention to accreditation is clear. According to my search of their websites, the online newspaper Inside Higher Ed published 70 stories on accreditation in 2005, 141 in 2008, and 223 in 2012. The Chronicle of Higher Education published 535 stories on accreditation during the last three years. More accrediting organizations now make reports of their accreditation visits public and provide, through their “action letters,” detailed descriptions of how standards are met or not met. All of this information is now readily available electronically. Little of this disclosure was commonplace even five years ago.

Greater public attention to accreditation also means that boards can expect more scrutiny of their own operations—how members carry out their responsibilities and the board’s relationship with the president, its structure, and its work with faculty through shared governance. Institutional accrediting organizations have standards and policies that address all of these areas as well as a board’s fiduciary responsibilities. Accreditors expect evidence that such standards are met.

A governing board may have to manage a scenario in which its institution is fully accredited but then sees difficulties in some areas arise and become public—for example, in less-than-desirable student achievement—reflecting on both the accreditor’s and the institution’s judgments of quality. How will a board handle this? Boards will need to be prepared with appropriate statements or comments about such difficulties, working with the president, alumni, and other supporters to try to contain, without defensiveness, negative comments in the press and social media, or other external scrutiny.

Moreover, in this era of increased public concern about academic quality, accreditation is no longer viewed as the only means of judging that quality. Accreditation has had little competition—until recently. Today, however, students and the public have many options for judging a college or university. There are any number of sources of second opinions.

To many people, ranking systems published by U.S. News & World Report and others are useful sources for assessing a college’s quality. Another resource lies in increasing numbers of Web-based datasets that allow students and the public to easily compare institutions. The U.S. Department of Education’s College Navigator Web site is one example, a place where students can compare institutions on factors such as graduation rates and student aid. The press, in its coverage of how accreditation is doing its job, also judges quality, publishing stories about accreditation actions framed as a debate between the accreditor and an institution. This is especially the case if an accreditor takes a negative action against a college or university (for example, placing an institution on probation or giving it a warning).

Boards will need to anticipate how such second opinions about quality affect board decision making. If a college or university adopts a goal of seeking to improve its position in one or another ranking, this decision can drive the distribution of resources and institutional priorities. How will these changes affect the capacity of the institution to meet accreditation standards? How does a board explain high rankings while, at the same time, receiving an accreditation report that contains a good deal of criticism? Poor rankings but a glowing 323

accreditation report? How can an accredited institution have weak graduation rates or a large number of students who graduate with excessive debt, yet remain accredited?

Governing boards will need to manage the high visibility that now accompanies an accreditation review in this era of more open information, greater public scrutiny, and multiple, sometimes conflicting, opinions about quality.

EXPANSION OF GOVERNMENT OVERSIGHT OF ACCREDITATION

Accreditation, especially over the past half-dozen years, has become a policy instrument and is more than ever part of the political world. The federal government has a large and growing financial investment in higher education and is expected to exert even greater authority over accreditation in the future, if past legislative history is any indication. The result is escalating government oversight that is shifting accreditation from its historic mission of quality improvement to the role of being an agent for ensuring that institutions comply with government law and regulation.

Accreditation is addressed extensively in the federal Higher Education Act (HEA), most recently reauthorized in 2008, which also governs much of the federal funding directed to higher education. Some $175 billion in federal funds goes to accredited higher education institutions each year, and those bodies that confer the accredited status themselves undergo periodic scrutiny by the U.S. Department of Education, through a process known as “recognition.” Accrediting organizations must be approved—recognized—by the department if the colleges or universities they accredit are to be eligible for federal funds. Although this tie to the federal government has been in place for some 60 years, accrediting organizations remain nongovernmental organizations.

First passed in 1965, the HEA must be reauthorized at least every five years, although it usually takes additional years to complete this renewal. Accreditation has been subject to federal oversight since 1952, and standards for federal review of accrediting organizations have been laid out in the HEA since 1992. The year 2013 marks the beginning of another reauthorization cycle, with some congressional hearings already underway and congressional action likely in 2014 or 2015.

During reauthorization—a high-water mark in the level of attention that Congress pays to accreditation— new laws are enacted and current law is expanded, immediately followed by a growth in the number of regulations needed to carry out new or revised provisions of the HEA. The reauthorization completed in 2008 especially targeted the area of academic judgment (related to curriculum, faculty, and academic standards) in higher education, an area that traditionally had been under the purview of faculty and academic administrators. Accreditation was the vehicle used to assert more control in the area of academic judgment, through provisions and regulations targeting the daily operations of accrediting organizations.

There are many examples of this targeting. HEA provisions and regulations now call for accreditors’ oversight of enrollment growth, distance learning, student achievement, and the determination of credit hours or the quantitative worth of a course, program, or degree. Similarly, various provisions direct the composition of visiting accrediting teams and accrediting commissions, as well as appeals processes and the use of legal counsel. None of these issues were found in law and regulation 10 years ago. We expect such oversight to continue to grow. 324

The latest reauthorization is beginning at a time when many people in Congress express unfavorable and sometimes harsh views of accreditation. We often hear, “Accreditation is broken.” Or that “Accreditation needs to be fixed.” Others say, “Accreditation is not meeting society’s needs.” We hear calls for more attention to student-learning outcomes and for solutions to keep higher education affordable, usually prefaced by a comment that accreditation is an obstacle to innovation.

Another expansion of government oversight of quality may have taken place in August of this year—this time aimed at institutions, not accreditation. President Barack Obama called for a national rating system to judge the quality of higher education institutions and for establishment of performance-based measures for distributing federal student-aid funds. The judgment about the quality of an institution is now to be based on graduation rates, successful transfers between two-year and four-year institutions, graduates’ earnings, and the number of graduate-school degrees earned.

Accreditation was not mentioned in the president’s plan, and it is not clear whether this plan, if successfully developed, will be used in addition to accreditation or perhaps to replace accreditation. Whether accreditation might play some role with regard to the ratings system that the president envisioned is uncertain. What is clear is that the expectations in the plan vary greatly from the traditional indicators of quality to be found in accreditation, with emphasis on student achievement, on the rigor of academic standards, on the performance of faculty, and on the robustness of curriculum.

For governing boards, the expanding role of government in judging academic quality raises questions about the board’s traditional role in determining the strategic academic direction of an institution. Is board responsibility and authority for academic oversight diminishing? Is the faculty’s academic leadership being undermined? Is institutional responsibility for setting academic standards being overtaken by government- driven standards? How do boards carry out their commitment to a sound academic program when they are increasingly not free to judge the quality of that program on their own terms?

Governing boards can take a number of steps to address this expansion of government authority and to preclude any diminution of their role in providing oversight of academics, such as their judgment with regard to the growth of their institutions’ online education or international activities. These steps include undertaking an institutional audit to explore in what areas government regulations may affect a board’s role in supporting academic leaders and to look for ways to maintain that leadership in the future. Given the growing federal authority over higher education, we also need board members’ political action at the national level; we need more trustees to engage with members of Congress and officials in Washington, D.C. We need an institution’s continuing lobbying efforts to include strong advocacy for sustaining the academic independence of colleges and universities and for an accreditation enterprise that remains focused on enhancing quality—not consumed by compliance obligations driven by government regulation.

Governing boards will need to manage the growing government influence over accreditation that is targeted on the academic activity of their institutions. This government influence continues to raise questions about the degree of freedom that boards have in making decisions regarding the strategic academic directions that their institutions pursue.

INNOVATION IN HIGHER EDUCATION 325

A collection of educational innovations is making instruction of some sort available to great numbers of students—but from sources other than traditional colleges and universities. Typically, we are talking about short-term courses or other educational offerings that are online, do not carry credit, do not culminate in a degree, and are not accredited. These non-institutional offerings may be massive open online courses (MOOCs), other coursework offered directly by providers outside higher education, opportunities for competency-based education, and assessment of prior learning or “digital badges”—hyperlinked credentials that show a person has completed specific projects, programs, courses, and other activities.

MOOCs have garnered the greatest attention to date. Through companies including Coursera, edX, and Udacity—the major providers of MOOCs—online courses are being offered to millions of students worldwide, all outside traditional classrooms and apart from traditional courses. Supporters of MOOCs stress how they further democratize higher education through enhancing access. Detractors point to low completion rates, the lack of coherent curricula, the reinforcement of episodic education, and the lack of quality control. Other companies, such as StraighterLine and Saylor, offer their own coursework at low cost or for free. For $99 a month and $49 per course at StraighterLine, or by signing up for free courses from Saylor, students can enroll in a range of offerings from history to mathematics to information technology.

While efforts to document student skills using competency-based education and assessment of prior learning have been with us for decades, we are seeing renewed investment in those approaches. Two companies that have played large roles in this field, the Educational Testing Service and ACT, Inc., are strengthening their testing instruments and offering electronic certificates to document students’ learning outcomes. Mozilla has developed digital badges or electronic collections of documented skills to provide evidence of what students have learned.

Traditional colleges and universities have also been involved in recent innovations. The platforms on which MOOCs rest are furnished with educational content often developed in cooperation with those institutions. A number are considering accepting MOOCs for credit or have already done so. Some of the direct course providers mentioned above have developed agreements with traditional institutions to award credit for free or provide low-cost offerings. Other institutions, led by the University of Southern New Hampshire, Capella University, and Northern Arizona University, are establishing competency-based programs leading to degrees, and students enrolling in some of them have been deemed eligible to receive federal student aid.

The accreditation community has just begun discussing the issue of quality for non-institutional providers. A survey of accreditors that my organization, the Council for Higher Education Accreditation (CHEA), conducted this summer indicated that, of the 84 recognized accreditors that were surveyed, 50 percent did not include non-institutional work as part of accreditation reviews. During an August 2013 CHEA webinar, accreditors affirmed that their work was confined to what traditional institutions were doing with regard to offering credit for MOOCs, direct coursework providers, competency-based education, or assessment of prior learning.

The current educational innovations underway challenge accreditation in two ways. They raise questions about the present range of accreditation activity and about the public perception of accreditation’s role in supporting and encouraging innovation. Should accreditation include scrutiny of providers outside colleges and universities? If governing boards move to take on some of these innovative activities, will accreditation be a help or a hindrance? 326

For boards, a myriad of questions about innovation will find their way onto meeting agendas. Should my institution offer MOOCs? What would such an investment involve? Should we enter into a partnership with private course providers? Accept digital badges as a foundation for awarding credit? Will the acceptance of non-institutional work affect our accreditation? If so, how? As MOOCs and direct providers of educational coursework attract significant numbers of students, will this affect enrollment at my institution?

Governing boards will need to manage the adoption and impact of current innovations on their institutions and gauge their effect on accreditation.

MOVING AHEAD

The additional public scrutiny that has become part of accreditation and higher education generally means that accrediting organizations, institutions, and boards need to come together to expand effective practices in working with the public. With regards to the growing role of government, CHEA will be collaborating with other higher education associations and accrediting organizations to make the case for preserving the essential aspects of traditional accreditation as vital to the future of academic quality, while sustaining commitment to public accountability. That means advocating for the need for academic leaders, not government officials, to judge educational quality. It also means reminding lawmakers of the vital role that accreditation has played in creating and sustaining the valuable and effective higher education enterprise that our country continues to enjoy.

The current focus on innovation challenges boards to give careful attention to how significant change can strengthen their institutions. At the same time, CHEA will be working with accrediting organizations to explore whether to expand scrutiny to include MOOCs and competency-based education alongside the long- standing traditional evaluation of institutions and programs. Alternatively, other accreditation vehicles may emerge, focused particularly on such innovations.

The bottom line is that the role of accreditation, like almost everything else in higher education, is changing. New and emerging demands will undoubtedly require boards to spend more time on, and have a deeper understanding of, accreditation issues as they relate to their particular institutions.

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Section 5 Board Chair’s Agenda

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Section 6

Chancellor’s Report

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COLORADO STATE UNIVERSITY SYSTEM CHANCELLOR’S REPORT February 2, 2017

CSU-System Wide  Continued meetings around collaboration between Fort Collins and Pueblo related to IT.  Academic system-wide integration opportunities in relation to admissions and transfers continue to make progress through efforts of Cheryl Lovell.  Launched Director of Internal Audit Search.

CSU-Pueblo  CSU-Pueblo Presidential Search Advisory Committee meetings continue to progress.

CSU System Government Affairs - Federal:  Chancellor Frank and Executive Vice Chancellor Parsons met with Senator Bennet and staff regarding opportunities around the National Western Center redevelopment on December 14, 2016.

CSU System Government Affairs – State:  Meetings with key members of the legislature and local delegations continue.  Chancellor Frank presented at the annual Joint Budget Committee hearings on January 5, 2017.  Co-hosted a legislative briefing and dinner at National Western Complex to update legislators on plans for the redevelopment on January 19, 2017.  Chancellor Frank and CFO Lynn Johnson presented to the Capital Development Committee on the National Western Center Redevelopment.

Statewide Partnerships:  Chancellor Frank participated on a panel for Colorado Forum on higher education January 4, 2017.  Chancellor Frank and Executive Vice Chancellor met with Denver Water to discuss collaboration at the National Western Center Redevelopment.  Chancellor Frank participated on a panel “Making Excellence Inclusive” at DU, January 19, 2017.  Chancellor Frank attended the National Western Stock Show Board Meetings and the Denver Chamber Board meetings in December and January.  Chancellor Frank attended the annual meeting of the Boettcher Foundation Board in December.  Chancellor Frank, Vice Chancellor Parsons and other System representatives participated in events to kick off the 2017 National Western Stock Show.  Chancellor Frank and others attended the Colorado Business Hall of Fame Dinner Jan. 26 to honor Chancellor Emeritus Joe Blake. 330

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Q&A with CSU's Melanie Calderwood 331

CSU Day at the Stock Show Join CSU alumni, students and friends for the 11 a.m. Pro Rodeo, mutton bustin' with little Ram fans, a photo with CAM the Ram, and lots of CSU pride. Learn more and get your tickets here.

Stock Show Events Throughout the National Western Stock Show, CSU colleges, units, and students have a presence on the second and third floors of the Hall of Education, and CSU students run the Ag Adventure, an Melanie Calderwood is a educational booth where children can learn about food systems. Colorado State University staff View all of CSU's activities here. member who has been involved in the National Western Stock Show since While you're at the stock show, look for digital kiosks outlining plans she was young, and currently for the National Western Center and provide feedback on the manages the CSU Ag Adventure team. project. "Hands down my favorite part January 2, 2017 - Young Guns Reception at Coors Western Art of the stock show is The Yards. There is a culture and tradition in the yards that January 3, 2017 - Coors Western Art Exhibit dates back years of cattle The art exhibit runs through the duration of the Stock Show and ranchers and other livestock producers building proceeds from sales benefit the National Western Scholarship Trust. relationships and improving the cattle industry. It’s also a January 5, 2017 - National Western Stock Show Parade great place to see everyone on an annual basis, where you Look for CAM the Ram and the CSU Ramhandlers in the parade, can catch up on the latest on- which walks down 17th Street. goings of the industry and your friends."

January 5, 2017 - NWSS VIP BBQ presented by CSU Read more here. Following the parade, join CSU for a BBQ lunch at 11:30 a.m. in the Wells Fargo Building atrium. BBQ meal tickets are $10 and proceeds benefit the 4-H International Youth Group. Additional events January 6, 2017 - Boots 'n Business

Make sure to make it to the January 9, 2017 - Citizen of the West Dinner National Western Stock Show, and also check out the great January 13, 2017 - 4-H Day at the Stock Show exhibits other National State officers and state 4-H staff are available at the CSU booth to Western Center partners have answer questions about 4-H and hand out giveaways. running into January:

January 14, 2017 - CSU Day at National Western Stock Show The Extreme Mammals at the CSU Day at the Stock Show celebrates the university's heritage with Denver Museum of Nature & this important annual event. CSU fans will take over the 11 a.m. Science is open from 9 a.m. to rodeo, CAM the Ram will be available for photos throughout the day, 5 p.m. every day and runs and visit CSU's booths for giveaways. Purchase discounted tickets through January 8, 2017. 332 here. The Awkward Family View all National Western Stock Show events, here. Photos at History Colorado is open from 10 a.m. to 5 p.m. every day and runs through January 8, 2017.

This is a Special Edition newsletter going out to our regular newsletter subscribers and focusing on the upcoming National Western Stock Show.

Our quarterly newsletter is sent to CSU partners and to individuals who have expressed interest in CSU’s role in the National Western Center redevelopment and the university’s activities in Denver, in order to share news and updates about the NWC and its partners.

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CSU Day at National Western Stock Show January 14, 2017 334 335 336 337 338 339

Section 7

CSU-Global Campus Reports

 CSU-Global Campus Student Representative’s Report  CSU-Global Campus Faculty Representative’s Report  CSU-Global Campus President’s Report

340

Board of Governors to the Colorado State University System February 1-2, 2017 Student’s Report

What Innovation means to CSU Global Students

“The alarm clock screaming, bare feet hit the floor, it’s off to the races, everybody out the door.” The words to a Johnny Diaz song ring true for CSU Global students. With more than full time job, three teenagers going in three different directions, a firefighter husband with a part-time BBQ grill business, and a little dog who thinks he is the size of a German Shepard, this CSU Global student is not much different than the average Global student. We are busy. We are committed. We are driven to finish our degree.

Over the past few months, CSU-Global has implemented many new innovative programs and tools to assist their students. Experiencing the support, creativity, willingness to listen, and the passion to ensure student success, CSU-Global is a true leader in the online world of higher education. Below are just a few of the highlights of the recent innovations CSU-Global has implemented and created for the Global student population.

 Monthly Newsletter-this wraps up the months happening in a very neat and easy to read format to keep all students informed of news, opportunities, and upcoming events, student discounts, and career advice.  Mobile App-this is priceless. Students can access their CSU-Global account on their phone. Whether paying tuition, emailing an advisor or instructor, or accessing the library for a quick reference, the Global app is essential to make student’s busy lives a little bit easier.  Portfolium-an e-Portfolio with the ability to showcase student talents via educational and career achievements, Portfolium is linking the geographically disperse Global student community. It also connects employers with qualified candidates and unlike any other social media, allows for the showcase of projects, papers, and research projects.  CSU-Global’s Student Assistance Program-a free and confidential 24/7 assistance program available to all students. Services include live assistance to online resources focusing on mental health, work-life balance, career development, financial and legal assistance, health and wellness, relationships, and more.  Faculty Speaker Series-this is an amazing new series offered twice a month by faculty members who bring real life application to the courses they teach. If a student is not able to attend a live session, recordings are available on the CSU-Global YouTube channel and various social media platforms.  Improvements in the writing and research center-this includes research coaching via text, chat, Zoom session, and additional resources available in the library.

341 Board of Governors of the Colorado State University System Meeting Date: February 2, 2017

MATTERS FOR ACTION:

Report Item. No action necessary.

EXPLANATION:

Presented by Tony Vrba, Ph.D., Faculty Representative from CSU-Global

Report to the Board of Governors that provides an overview of the CSU-Global’s Faculty Speaker Series, New Faculty Grant opportunities and 2016 Faculty Survey results.

Faculty Speaker Series

 Offers bi-monthly research presentation by faculty focusing on research and innovative interdisciplinary contexts. o One hour video or phone conference connection starting at noon on Wednesdays . Central American Gang Violence and its Impact on the United States by Dr. Robert Kirkland

Professional Grant Opportunities for Faculty expanded

 Professional Development Grant for training and conference participation-$250  Scholarly Association Grant for academic paper presentations and lectures-$500  Research Presentation Grant for academic paper presentations at peer-reviewed conferences-$1,500  Publication Stipends-$500

2016 Faculty Survey Results

 Administered every year in November-data are used to improve faculty experience  For 2016, increased response rate to 80% or 370 of 460 faculty members responding, this is an increase from the 2016 response rate of 74%.  Faculty overwhelmingly rated Strongly Agree or Agree in the areas of: o Receive regular updates-98.9% o Feel supported by Program Coordinator-92.6% o Feel supported by Administration-93.2% o Availability of academic support services-93.8% o Course content is aligned with learning outcomes-95.9% o Courses are rigorous- 94.5% o Technology support is available and effective-98.1%

CSU – Global Faculty Representative Board Report

342 Board of Governors of the Colorado State University System Meeting Date: February 2, 2017

 Faculty rated areas discussion rubrics (77.5%) and assignments rubrics (83.1%) as effective o A faculty task force on rubrics is working on improving rubrics and a pilot study on a new rubric is taking place

Faculty responded that the maximum number of students per course is about right – 74.4% - this percent has increased steadily over the last two years (2015-71%, 2014 – 66%), which aligns with the implementation of the Faculty Management System to support scheduling.

Overall, 97.3% of faculty responded that they strongly agreed or agree that they are satisfied with CSU-Global.

CSU – Global Faculty Representative Board Report

343 Board of Governors of the Colorado State University System February 2, 2017 President’s Report Item

CSU System Strategic Goals: Service, Student Success CSU-Global Transformation Plan Goal: Utilize Evidence-based Practices

 The university has added new technology to its Writing and Research Center so that students can sign up as needed for free, live tutoring sessions in writing and research led by CSU-Global faculty members. One-on-one student sessions incorporate video-based technology so that they can take place ‘anytime, anywhere’.

 CSU-Global Library traffic and activity has increased significantly over the past 2 years which has doubled the number of requests for assistance with locating reference materials and increased by more than 8x the number of requests for inter- library loan materials. To ensure sufficient student support, the Library staff now includes a Head Librarian, Assistant Librarian, and a Library Aide.

 The Library was awarded a small grant from the State of Colorado’s Library for new CSU-Global Library subscriptions that include Morningstar, Countrywatch, and multiple ebook titles to support new degree program specializations.

 We continue to explore and evaluate different methods to personalize our education through the use and integration of simulation and adaptive learning tools. Since the beginning of FY17, we have integrated new simulations into our business management, IT, marketing, project management, and operations courses; and added adaptive technologies and labs into our general education (Math, English, Biology, Physics), accounting, computer science, and information science management classes.

CSU System Goals: Service CSU-Global Transformation Plan Goal: Develop Innovative Stakeholder Engagement and Sharing for Global Good

 CSU-Global’s faculty speaker series offers bi-monthly research presentations by faculty who are community practitioners that share a commitment to research and scholarly integrity. Presentations are conducted using virtual conferencing technology for viewing and participation of students around the world. Upcoming presentations include o January 11 - Dr. Robert Kirkland Central American Gang Violence and its Impact on the United States

Page 1 of 2—CSU-Global Campus Report

344 Board of Governors of the Colorado State University System February 2, 2017 President’s Report Item

o January 25 - Dr. Douglas A. Orr Electing a Sheriff: Pure Voter Behavior at the County Level o February 8 - Dr. J. Michael Skiba International Trends in Economic Crime

 The 2016 Faculty Satisfaction Survey had an 80% response rate of which 97.3% of CSU-Global faculty Strongly Agree or Agree with the statement that “Overall, I am satisfied with teaching at CSU-Global”.

 The Career Center continues to evolve with its first Portfolium Challenge in which students submitted work samples demonstrating project management and leadership skills; its ACSBP Regional Meeting presentation on CSU-Global’s faculty career coaching program; and its inclusion of an Experiential Learning Coordinator to facilitate student practicum/internship opportunities and explore other experiential learning initiatives.

 CSU-Global is pleased to announce the January launch of its updated Student Assistance Program which makes available to students, immediate, free, and confidential help towards mental health, financial and legal assistance, health and wellness, family life and parenting, relationships, grief and loss, and other life- need issues. The Student Assistance Program is available to students 24x7 through the Student Portal and the CSU-Global App, and provides a range of support services that include live assistance and online counseling to articles, skill-building activities, planning tools, and seminars.

Page 2 of 2—CSU-Global Campus Report

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Section 8

Colorado State University Reports

 Colorado State University Student Representative’s Report  Colorado State University Faculty Representative’s Report  Colorado State University President’s Report

346

President Daniela Pineda Soracá Student Representative-CSU Fort Collins Campus

As my time serving as the 2016-2017 Student Body President at Colorado State University comes to its last semester, I look forward to a challenging and rewarding remainder of the academic year. In efforts to facilitate an improved transition process for the incoming Student Representative, I will be holding preliminary informational sessions for potential candidates throughout the month of February and early March. The hope of these sessions are to truly give candidates a feasible sense of what this position entails and to challenge them to think strategically about what kind of path our Fort Collins Campus is moving towards. If any continuing member from the Board wishes to be included in these sessions it would be my pleasure to host you. The work that the Board has on their agenda will not stop at my last day in office, and I am seeking the guidance of Board Members to inspire the next leader of CSU’s Student Body to be a visionary of the Colorado State University System.

Diversity and Inclusion Updates  The Associated Students of Colorado State University have passed legislation this semester that allows a new senate seat for a representative from the Multi-faith and Belief Council in the Legislative Branch. This seat hopes to constructively bring representation to the wide range of views of CSU’s student body to the campus.

Environmental  Alternative Transportation o With the 2nd year of the Alternative Transportation Fee Advisory Board upon our student body, we are working closely with the rest of CSU’s leadership to gauge the need for service expansion of our current Transfort contract. o ATFAB will also decide on additional initiatives that it wishes to pursue in the upcoming fiscal year. Final funding proposals will be approved by the Student Fee Review Board this semester. Health  This semester will showcase CSU’s annual Mental Health Week, Body Acceptance Week, GYT (Get Yourself Tested) Campaign that includes peer and community programming.  Planning pre-spring Break Health & Safety educational activities o First week of March  CSU Campus + Community Health Fair Hosted By ASCSU o April 2017 Outreach  Leadership Exchange Program with Autonomous University of Baja California o Traveling February 22-25, 2017 o Looking to launch this program in collaboration with SLiCE in Fall of 2017 o CSU Mobile Food Pantry State and Local Policy 347  Looking forward to engage the CSU community in the local City of Fort Collins Elections  Attended the City of Fort Collins State of the City Address on January 30th  Planning our annual ASCSU “Day at the Capitol” Visit o February 21st,2017 Traditions and Programs  Hosting all student “Ram Madness” Basketball Tournament throughout the month of March, winning team will get to donate funds to a charity of their choice  Planning programming for a special surprise event in collaboration with the Alumni Association- Stay tuned for details  Planning programming for I love CSU Day-April 18th, 2017  Planning for end of the year “Ram Farewell” & Graduating Senior programming with various student organizations

University Affairs  Game-Day Operations/Student Programming o Finalizing details of Fall 2017 Game Day Logistics and Programming . Game Day Experience Committee . Open House 1/27  Working with student leaders and the Division of Student Affairs to discuss the framing of the “BARE Run” and proactive measures to take for the Spring of 2017 o Update: In the early stages of helping to craft messaging to address the troubling outcomes of this event (property damage, conduct, sexual assault, and substance citations) . Rams Take Care of Rams Program? . Working with Student Organization Leaders  Financial Aid Education & Personal Finance o I urge CSU to expand upon it’s current Financial Aid operations . Call hold times remain long-parent and student complaints . Focus on Financial Aid Education during Recruitment, Admission, and Orientation processes

348

Report by the Faculty Representative from CSU – Fort Collins to the Board of Governors February 1-2, 2017, Pueblo, CO. Below I provide a summary of the December 6, 2016 Faculty Council meetings (full meeting minutes are posted on the CSU Faculty Council web site). Respectfully submitted by Dr. Paul Doherty, CSU Faculty Representative to the Board of Governors.

Faculty Council meeting highlights – December 6, 2016

1) Reports a. President Frank i. Reported on election impacts to CSU. Not much is known. The Trump administrative team has provided little information on potential impacts to higher education. ii. With regards to immigration policy impacts on higher education, Frank explained DREAM act, DACA, and ASSET. 1. DREAM act would have provided a path to citizenship for undocumented students who attend college. It failed to pass and is deadlocked in Congress. 2. DACA (Deferred Action for Childhood Arrivals) is an executive order signed by President Obama in 2012. It defers deportation of undocumented children, and is renewable every 2 years. It allows undocumented children to receive a social security number, work permit, and fill out a FAFSA form for state financial aid (although these students are ineligible for federal financial aid). 3. ASSET is a Colorado bill passed in 2013. It qualifies DACA students for in-state tuition and institutional financial aid. iii. President Frank and others have communicated with all ASSET students at CSU (119 total) to express support of DACA and ASSET. He also signed a national petition in support of DACA and cautioned that we don’t know what will happen; if President-elect Trump will rescind the DACA executive order or not. iv. There was a robust discussion of the Bullying Policy, including whether or not it should be included in the Manual (pro’s and con’s) and the process for Faculty Council to participate in the revision process of the Bullying Policy (including the Comm. on Responsibilities and Standing of Academic Faculty). b. Provost Miranda i. Presented a draft, incremental E&G budget. ii. New revenues include $3M in new state appropriations, new tuition revenue from enrollment growth and shifts in international/out-of-state students. Budget model projections include tuition increases of 4.5%, 5%, and 6%. iii. New expenses include: 1. Faculty/staff compensation = $11.7M (based on 2.5% merit increase, promotions, retentions, and a 0.5% increase in the DCP). 349

2. Academic incentive funding = $8.7M. This includes return of tuition, due to enrollment growth, to colleges (2-3-6 model), graduate tuition sharing, etc. 3. Financial aid = $6.3M (based on 5% tuition increase) 4. Mandatory costs = $5M 5. Reallocation = $3M (about 1% of cut-able budgets within units) 6. Quality enhancements = $1.37M 7. Multi-year strategic investments from Central Admin = $1.7M c. Chair Stromberger i. Committee on Teaching and Learning (CoTL) 1. Charged by Chair Stromberger with bringing forward a draft Phase I course survey to Faculty Council by the end of the spring semester. The survey would consist of a set of core questions that address instructional delivery and course content, be evidence based, and delivered on-line, preferably through Canvas. 2. At the same time the Phase I survey is presented to Faculty Council, CoTL will bring forward proposed revisions to the Manual, Sections E.12.1 and I.8, that states the purpose of the survey, the responsibilities of ASCSU in financing the survey, where survey results will be posted, and parties that have access to the survey (I.8), as well as a clear policy on how the course survey will and will not be used in faculty teaching evaluations. 3. Parallel to the Phase I development process, Executive Committee charges CoTL to continue working towards the survey envisioned by Dr. Zinta Byrne, complete with a pool of flexible questions for customization (the Phase II survey). CoTL should work with Dr. Pat Burns to identify or develop the survey delivery platform that will allow the Phase II survey to be delivered on-line. The target deadline for the Phase II survey to be approved by Faculty Council is May 2018. ii. Review of 4 potential parking plans 1. Current Plan a. 3% increase in permit fees ($582 for A lot) b. $250 permit for Research Blvd. lot 2. Current Plan with Modifications a. Same as above, plus a $400 permit for Moby lot b. Discounted lot at Ingersoll for residence hall students ($400) c. Still considering what to do with permits for retirees and employees with 30+ years employment 3. Salary-Based Plan a. With 5 salary bands, employees making <$35K/year would pay $250, $35-50K would pay $490, $50-80K would pay $730, $80- $120K would pay $970, and >$120K would pay $1,210. b. With 4 salary bands, employees making <$35K would pay $250, $35-70K would pay $582, $70-120K would pay $914, and more than $120K would pay $1,246. 350

4. Consultant’s Recommended Plan a. Permits purchased for designated lots only. Fees vary by lot (e.g., $582 for peripheral lot, $1,100 for BSB lot or lot south of Admin Building, $2,400 for reserved spaces). b. Would involve wait lists to move into desired lot. 2) Actions a. The following faculty were elected to three-year terms on Faculty Council standing committees: i. Leslie Stone-Roy, College of Vet. Med. and Biomed. Sciences, Committee on Non-Tenure Track Faculty ii. Tobin Magle, Libraries, Committee on Non-Tenure Track Faculty iii. Mo Salman, College of Vet. Med. and Biomed. Sciences, Committee on University Programs b. The proposed revisions to the Manual, Sections D.3.6, D.5.1, and Appendix I, were approved. i. Adds pregnancy and discussion of pay as items that cannot be discriminated against. Brings the Manual into alignment with Federal law. c. Faculty Council approved a new degree, Master of Addiction Counseling, Plan C, to be effective Fall 2017 pending final approval by the Board of Governors. d. The proposed revisions to the Manual, Section I.11, and the General Catalog were approved. i. New language reflects the process by which Adult Learner and Veteran Services office (rather than CASA) assists students in withdrawing from the University when called to active duty. e. The proposed revisions to the Graduate and Professional Bulletin, Graduate Study, were approved. i. Adds a table of contents heading and link that was accidentally deleted when the Bulletin was moved into the General Catalog. 351 Board of Governors of the Colorado State University System Meeting date: February 2, 2017

COLORADO STATE UNIVERSITY PRESIDENT'S REPORT Board of Governors of the Colorado State University System February 2, 2017

I. TEACHING AND LEARNING: ASSURE EXCELLENCE IN ACADEMIC PROGRAMS

A. Colorado State University opens spacious, state-of-the-art veterinary cancer center

Colorado State University on Dec. 10 celebrated the opening of an expanded and improved hospital unit dedicated to the evaluation and care of animal patients with cancer. The Lucy Oncology Clinic encompasses 4,100 square feet in CSU’s James L. Voss Veterinary Teaching Hospital and is part of the university’s renowned Flint Animal Cancer Center, which treats animal patients while providing findings that improve cancer care for both pets and people. The oncology remodel is notable for consolidating aspects of patient examination and treatment that earlier were scattered through the Veterinary Teaching Hospital. Cost of the renovation project was $1.75 million, with a lead gift of $1.5 million from dog lover and supporter Jeffrey Neu of California and his brother Robert Neu of New York City. The renovation is the largest clinical service upgrade to date in a series of construction projects that began at the Veterinary Teaching Hospital in 2010 and will continue through 2020 at a cost of more than $20 million.

B. CSU named top-performing institution for sustainability in 2016

The Chronical of Higher Education has named Colorado State University No. 1 on the “The 2016 Sustainable Campus Index.” The index is based on ratings published by the Association for the Advancement of Sustainability in Higher Education, or AASHE, which recognizes top-performing colleges and universities in 17 distinct aspects of sustainability and overall, as measured by the association’s Sustainability Tracking, Assessment, & Rating System, known as STARS. Considered for these rankings were the 249 institutions that submitted a valid Stars Version 2 report between July 1, 2013, and June 30, 2016.

C. Colorado State University recognizes more than 2,000 Fall 2016 graduates

Colorado State University conferred degrees on 2,112 Fall 2016 graduates at commencement ceremonies Dec. 16-18. College ceremonies and Army ROTC commissioning recognized 1,558 undergraduate and 473 graduate students, including 72 doctoral students, and nine Army and Air Force ROTC commissionees. Sixteen students were candidates for distinction as summa cum laude, 41 as magna cum laude, and 59 as cum laude.

352 Board of Governors of the Colorado State University System Meeting date: February 2, 2017

D. Collaborative educational campus to be established in Castle Rock

Arapahoe Community College has accepted from the Castle Rock Town Council the investment of $3 million in infrastructure reimbursement to construct a Collaboration Campus. Educational partners Colorado State University and Douglas County School District will articulate with ACC to create a smooth pathway from high school diploma to associate degree to bachelor degree. The campus will bring together education, business, and the community to deliver seamless education and workforce training to Castle Rock. ACC’s $40 million Castle Rock campus is planned for a 14-acre site in the Meadows. This two-phase project will consist of two buildings of 54,000 sq. ft. each, with an estimated opening of phase one in fall 2019. ACC, CSU, and DCSD’s joint engagement with Castle Rock businesses and focus groups have determined the initial educational offerings will be in the areas of business and entrepreneurship, health care, information technology/programming, general education, and workforce training.

II. TEACHING AND LEARNING: INTEGRATE ACADEMIC AND CO- CURRICULAR EXPERIENCES

A. CSU students provide historic chronicle of town's churches, sugar-beet factory

A group of Colorado State University graduate students gained professional experience in the art of going back in time by performing a historical analysis of churches and a sugar-beet factory in the town of Windsor, Colo. Adam Thomas, an instructor in the Department of History, worked with the students to conduct interviews and compile reports, photos, maps and other materials about the architectural history of the town. They publicly presented their findings to the Windsor town board and historic preservation commission Dec. 5.

III. RESEARCH AND DISCOVERY: FOSTER EXCELLENCE IN RESEARCH, SCHOLARSHIP, AND CREATIVE ARTISTRY/FOCUS IN AREAS OF INSTITUTIONAL STRENGTH AND SOCIETAL NEED

A. Colorado State University veterinarians help bring groundbreaking cancer drug to market

Through its clinical trials for animal patients, Colorado State University helped prove the usefulness of the first drug approved by the FDA for treatment of canine lymphoma, a breakthrough in veterinary oncology that promises new hope for pet dogs with this common type of cancer. The U.S. Food and Drug Administration said on Jan. 3 that the lymphoma drug, Tanovea-CA1, is approved for one-year use in canine patients and will be available to veterinarians nationwide this spring. CSU has been pivotal in the medication’s march to market. Veterinarians with the Flint Animal Cancer Center have been key advisors as the Fort Collins-based VetDC has refined Tanovea-CA1 for veterinary use. CSU veterinarians also helped treat canine cancer patients whose cases contributed proof of the drug’s usefulness; 350 dogs were treated nationwide.

B. Study: Attending the symphony reverses cognitive decline in people with dementia

A program that delivers the gift of live classical music to people with dementia has shown strikingly positive effects on mood, cognitive function, and relationships. Colorado State

353 Board of Governors of the Colorado State University System Meeting date: February 2, 2017

University researchers spent nine months studying the impact of B Sharp, an arts engagement program in which people with Alzheimer’s disease and other forms of dementia attend a series of Fort Collins Symphony performances with their caregivers. The study found that the majority of participants experienced an unexpected reversal of cognitive decline over the course of the program. The lead researcher is Jeni Cross, an associate professor in CSU’s Department of Sociology.

IV. RESEARCH AND DISCOVERY: IMPROVE DISCOVERY CAPABILITIES

A. CSU, Future Earth team land $2 million sustainability science grant

A team led by Josh Tewksbury, director of the Colorado Global Hub of Future Earth, and W. Chris Funk, director of the Global Biodiversity Center at Colorado State University's School of Global Environmental Sustainability, in December received a $2 million grant from the Gordon and Betty Moore Foundation to fund sustainability science projects. The program focuses on three broad themes: Integration of water, energy and food issues; predicting and adapting to rapid changes in ecosystems; and sustainable management of ocean resources. CSU and the University of Colorado Boulder manage the Colorado hub of Future Earth, a global organization that supports sustainability science, jointly.

V. SERVICE AND OUTREACH: PREPARE AND EMPOWER LEARNERS OUTSIDE THE CAMPUS ENVIRONMENT

A. CSU's Fashion FUNdamentals wins $25,000 award from State Farm

Fashion FUNdamentals, a CSU program for girls that builds self-esteem and knowledge about STEM fields by having them create their own fashions, in December won $25,000 as part of a crowd-sourced philanthropic campaign from State Farm. Fashion FUNdamentals, developed by faculty in the Department of Design and Merchandising, is a two-week, no-cost, summer enrichment program that targets underserved girls between the ages of 11 and 14 in Northern Colorado.

B. 'Place' matters in APLU award

Colorado State in November won a top national Innovation and Economic Prosperity University award for its impact on economic development. The IEP Universities Place award represents further recognition of Colorado State’s efforts to nurture opportunities for collaboration and innovation with public and private partners. In July, Colorado State was one of six public universities nationwide named in APLU’s fourth annual class of Innovation and Economic Prosperity Universities. The designation identifies institutions working to advance the economic well-being of their states, regions and the nation through a variety of efforts including innovation and entrepreneurship, technology transfer, talent and workforce development, and community development.

354 Board of Governors of the Colorado State University System Meeting date: February 2, 2017

VII. RESOURCES AND SUPPORT: EXPAND FUNDRAISING

A. Major Gift Report Dec-16 FY17 (July - December) FY16 (July - December Amount Count Amount Count Amount Count Contributions $38,239,185 8,867 $82,721,341 24,744 $96,229,755 22,096 Irrevocable Planned Gifts $20,035,899 2 $22,887,089 6 $1,412,019 5

Revocable Gifts and Conditional Pledges $1,330,000 10 $17,106,915 54 $11,276,420 56

Payments to Commitments Prior to Period ($8,501,777) 935 ($14,237,696) 1,226 ($28,114,406) 942 Total Philanthropic Support $51,103,306 8,342 $108,477,649 24,267 $80,803,787 21,696 Private Research $1,811,061 21 $18,729,282 112 $16,650,747 121 Net Private Support $52,914,367 8,363 $127,206,932 24,367 $97,454,535 21,802

Major Gifts – Not Previously Reported

$40,000,000 in pledges designated as $6,000,000 to support the Walter Scott, Jr. Undergraduate Scholarship, $2,500,000 to support the Walter Scott, Jr. Presidential Chair in Energy, 2,500,000 to support the Walter Scott, Jr. Presidential Chair in Environmental Science and Engineering, $2,500,000 to support the Walter Scott, Jr. Presidential Chair in Water, $2,500,000 to support the Walter Scott, Jr. Presidential Chair in Health, $2,500,000 to support the Walter Scott, Jr. Dean's Strategic Discretionary, $1,500,000 to support the Walter Scott, Jr. Graduate Fellowship, $5,000,000 to support the Walter Scott, Jr. Presidential Chair III Endowment, $5,000,000 to support the Walter Scott, Jr. Presidential Chair IV Endowment, $5,000,000 to support the Walter Scott, Jr. Presidential Chair I Endowment, and $5,000,000 to support the Walter Scott, Jr. Presidential Chair II Endowment, College of Engineering

$2,000,000 gift to support the Richardson Design Center, College of Health and Human Sciences

$1,500,000 revocable commitment designated as $525,000 to support the McBride Endowment, College of Liberal Arts, $525,000 to support the Hydraulics Laboratory, College of Engineering, and $450,000 to support the Students First Scholarship Endowment, Enrollment & Access

$1,197,836 gift in kind to support the College of Engineering Dean's Innovation, College of Engineering

$1,000,000 planned gift payment to support the Dr. Delbert A. Osguthorpe Family Fund, College of Veterinary Medicine & Biomedical Sciences

Revocable commitment to support the Dr. Sarah Lindsay Schillereff Memorial Scholarship Endowment, College of Veterinary Medicine & Biomedical Sciences

355 Board of Governors of the Colorado State University System Meeting date: February 2, 2017

$586,000 gift to support the SoGES - Research, Research & Interdisciplinary Programs

$550,000 gift designated as $400,000 to support Equine Outreach and Industry Relations, College of Agricultural Sciences, and $150,000 to support Equine Assisted Activities and Therapies Programming, College of Agricultural Sciences

$541,181 gift to support the Animal Heart Center, College of Veterinary Medicine & Biomedical Sciences

$500,000 revocable commitment to support the CVMBS Greatest Need, College of Veterinary Medicine & Biomedical Sciences

$430,800 pledge to support Football Premium Seating, Athletics

$351,190 gift in kind designated as $175,595 to support the CSURF Gifts of Land - Athletics, $140,476 to support the CSURF Gifts of Land - Alumni Relations, and $35,119 to support the CSURF Gifts of Land - College of Engineering

Revocable commitment to support the CSU Stadium, Athletics

Revocable commitment to support the Dr. Sarah Lindsay Schillereff Memorial Scholarship Endowment, College of Veterinary Medicine & Biomedical Sciences

$192,495 gift to support the College of Health and Human Sciences Outreach, College of Health and Human Sciences

Gift to support the Patterson Family and Beavers Charitable Trust Heavy Construction Initiative Endowment, College of Health and Human Sciences

$180,605 in gifts to support the Alumni Center Project, Alumni Relations

$175,000 pledge to support the Gary and Kay Smith Global Food Innovation Center, College of Agricultural Sciences

$157,100 pledge to support Football Premium Seating, Athletics

$150,000 gift to support the Veterinary Teaching Hospital, College of Veterinary Medicine & Biomedical Sciences

Gift to support Holly's Legacy, College of Veterinary Medicine & Biomedical Sciences

Revocable commitment to support the Dr. Sarah Lindsay Schillereff Memorial Scholarship Endowment, College of Veterinary Medicine & Biomedical Sciences

$148,525 gift to support the C.P. Gillette Museum of Arthropod Diversity, College of Agricultural Sciences

356 Board of Governors of the Colorado State University System Meeting date: February 2, 2017

$127,107 planned gift to support the Leonard and Carolyn Berghoefer Scholarship Endowment, Student Affairs

$105,267 pledge to support Football Premium Seating, Athletics

$100,000 gift to support Equine Orthopaedic Research, College of Veterinary Medicine & Biomedical Sciences

$100,000 pledge designated as $75,000 to support the EKS&H Accounting Scholarship Endowment, College of Business, and $25,000 to support the EKS&H Accounting Scholarship, College of Business

$100,000 gift to support the Patterson Family and Beavers Charitable Trust Heavy Construction Initiative Endowment, College of Health and Human Sciences.

$100,000 revocable commitment to support the Warner College of Natural Resources Enrichment, Warner College of Natural Resources.

$100,000 gift to support the Center for Companion Animal Studies, College of Veterinary Medicine & Biomedical Sciences

$100,000 gift to support the Morgan and University Libraries Endowment, Morgan Library

$100,000 revocable commitment to support the Warner College of Natural Resources Enrichment, Warner College of Natural Resources

VIII. RESOURCES AND SUPPORT: NURTURING HUMAN CAPITAL

A. CSU Ventures celebrates 10-year anniversary

Since its creation 10 years ago, CSU Ventures, the university’s technology-transfer division, has racked up many milestones. Led by President Todd Headley, the team has worked with students and researchers to file 1,381 patent applications, sign 369 license agreements, establish 1,064 inventions, and launch 49 startup companies. CSU Ventures also has tallied almost $19 million in licensing income over the last decade. The numbers highlight the rise in engagement: CSU inventor participation increased 113 percent when compared with the previous 10 years.

IX. RESOURCES AND SUPPORT: INCREASING AWARENESS

A. CSU honors legendary coach Harry Hughes by renaming campus street

The name of Harry Hughes, the football coach who won the most games in Colorado State University history, will live on with the renaming of South Drive to Hughes Way, a street on the

357 Board of Governors of the Colorado State University System Meeting date: February 2, 2017 southwest side of campus. Hughes, whose combined coaching career in football, basketball, baseball and track at Colorado Agricultural College spanned four decades, won more games (126) and more conference championships (8) than any other CSU football coach, finishing with a career record of 126-92-18. He was known nationally as the “Dean of American Football Coaches” for his long, successful tenure at CSU.

B. Colorado State University lands six CASE awards for communication, fundraising

Colorado State University received six awards from the Council for Advancement and Support of Education for its communication and fundraising efforts, including Grand Gold for “State Your Purpose — The Campaign for Colorado State University.”

C. CSU student is sole U.S. male chosen for grueling bike race across Siberia

A Colorado State University graduate student is the only male cyclist in the country selected for the longest bicycle stage race in the world — a grueling 5,700-mile grind across Russia. Matthew Carnal, who is pursuing his master’s degree in the Department of Health and Exercise Science, is hoping to race in the third annual Red Bull Trans-Siberian Extreme, which starts in Moscow on July 18 and finishes on the other side of the country 24 days later, in the Pacific port of Vladivostok.

358 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Report Item

MATTERS FOR ACTION:

CSU: Delegable Personnel Actions

No action required. Report only.

EXPLANATION:

Presented by Tony Frank, President

At its August 3, 2012 meeting, the Board approved a resolution to expand the delegated and redelegable authority to the institutional Presidents to include approval, in accordance with Board-approved institutional policies: 1) sabbatical leaves and revisions to them; 2) emeritus faculty appointments; and 3) all requests for Leave without Pay, with periodic reports to the Board.

NAME DEPARTMENT FROM TO

Antonelli, Lara Health Network Medical 12/19/16 12/31/16 Blaise, Robert D CEMML 12/8/16 4/1/2017 Carpenter, Bryce Health Network Medical 12/29/16 12/30/16 Cooper, Leroy A Honors Program 1/1/17 8/16/17 Cotner, Dakota J College of Liberal Arts 11/14/16 12/20/16 Coughenour, Michael B NREL 12/28/16 7/1/17 de Matos e Silva, Carlos MIP 12/14/16 1/7/17 Dunnam, Jillian A CEMML 12/5/16 12/27/16 Easton, Kirsten Constituent & Gift Information 12/30/16 12/31/16 Elffner, Terri R Health Network Medical 12/2/16 12/31/16 Filippelli, Steven K Ecosystem Sci & Sustainability 1/1/17 3/15/17 Gerlitzki, Elizabeth A Health Network Medical 12/19/16 12/31/16 Hedstrom, Amie R Atmospheric Science 12/1/16 6/1/17 Held, Marie L CEMML 11/3/16 11/8/16 Hoenig, Mark Health Network Medical 12/2/16 12/31/16 Jankowska, Elzbieta Electrical & Computer Engineering 10/18/16 1/16/17

Personnel Action Items Colorado State University – Fort Collins 359 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Report Item

NAME DEPARTMENT FROMTO

Johnson, Richard MAthletics 12/1/16unknown Jorgensen, Sarah E Health Network Medical 12/19/1612/31/16 Khalehpari, Yotam Residential Dining 12/19/1612/27/16 Khalehpari, Yotam Residential Dining 11/22/1611/25/16 Khalehpari, Yotam Residential Dining 10/13/1610/26/16 Knudson, Susan E MIP 1/1/177/1/17 Lamb, Amber M IDRC 12/21/1612/23/16 Matthews, Jon S Health Network Medical 12/7/1612/29/16 Medina, Tiffany A Health Network Counseling 12/1/1612/31/16 Mellon, April Health Network Medical 12/1/1612/31/16 Mensah, Ashley D WCNR 1/10/17unknown Monroe, Janet M Residential Dining 12/12/1612/27/16 Morse, Emily Health Network Medical 12/19/1612/23/16 Mulligan, Patricia J Registrar 12/16/1612/20/16 Ortiz, Darwin D CEMML 11/30/1611/30/16 Raadik Cotrell, Jana Honors Program 1/1/178/16/17 Roehrig, John T MIP 12/1/166/30/17 Ross, Abigail L Health Network Medical 12/29/1612/31/16 Smith, Karolynn L Health & Exercise Science 12/15/1612/21/16 Vesty, Jill C Health Network Medical 12/19/1612/31/16 Watson, Sara M Biomedical Sciences 11/22/1612/1/16 Watson, Sara M Biomedical Sciences 12/17/161/1/17 Weller, Aleta R SGES - SAU 11/15/161/24/17 Whitesell, Julie C Health Network Medical 12/19/1612/31/16 Wright, Brie M IDRC 12/16/161/9/17

Personnel Action Items Colorado State University – Fort Collins 360

CSU’s Multi-Purpose Stadium Report – February 2017

Construction Budget and Schedule Budget Stadium Academic & Alumni December Adjustment February December Adjustment February Report Update Report Update Fixed Limit of Construction $172,701,598 $523,265 $173,224,863 $14,125,790 $1,544,478 $15,670,268 Construction Management General Contractor Guaranteed Maximum Price (CMGC GMP) Other Hard Costs (miscellaneous $22,372,951 $663,375 $23,036,326 $2,228,932 $117,390 $2,346,322 construction, furniture, fixtures, equipment, technology, testing, inspections, utilities) Design and Professional Services $17,730,775 $42,407 $17,773,182 $1,693,439 $26,665 $1,720,104 Owner Contingency $7,533,821 $156,954 $7,690,775 $451,839 (334,740) $117,099 Total Budgets $220,339,145 $1,386,001* $221,725,146 $18,500,000 $1,353,793** $19,853,793

*Stadium Budget Adjustment: Additional Revenue Generating Assets ** Alumni Budget Adjustments: Final Buyout and Approved Alternates

Contingency Status* Original Remaining Project Owner Contingency $8,462,045 $7,807,874 *Cost evaluation of project alternates and presented risk ongoing, will not CMGC Bidding Contingency $1,118,380 $94,040 exceed remaining budgets. (in CMGC GMP) CMGC Construction Contingency $5,591,902 $1,866,661 (in CMGC GMP) Project is currently within budget

361

Schedule Substantial Completion Date June 2017 (stadium), July (A/A)  Seating benches and metal railing installation ongoing.  Interior wall installation in progress. CMU walls substantially complete. Drywall, tape, finish and paint being installed on all levels.  Mechanical, Plumbing, Fire Protection and Electrical Rough-in ongoing.  Stadium tower dried-in. Full enclosure anticipated in February 2017.  Field installation began December 2016 and is anticipated to complete in May 2017.  Enlarged Scoreboard Structural Steel began in January.  Site hardscapes ongoing.

Project is currently on schedule

362

CSU Multi-Purpose Stadium on Main Campus

Seven Months to Go: Milestones

February 2017: Enclosure Completion; Functional MEP Systems Testing (February 2017 - May 2017); Punchlist Kick-off- (February 2017)

March 2017: Install Athletic & Training Equipment (March 2017 – April 2017)

April 2017: Big Flush (April 4, 2017); Fire Alarm & Life Safety Testing

May 2017: Punch list certification for Substantial Completion;

June 2017: Opening of Meridian Ave; Date of Substantial Completion: Stadium (June 9, 2017); Furniture and Equipment Installation (June - July 2017) Administrative Closeout and Punch List completion for Stadium Final Acceptance (June 12, 2017- August 3, 2017); Move-in: All departments (June – August, 2017)

July 2017: Date of Substantial Completion: Alumni Center, CASA, Classrooms

August 2017: Final Acceptance Stadium (August 10, 2017)

September 2017: Soft Opening Event (Pending September 2, 2017) First Home Football Game (September 9, 2017)

Stadium Advisory Group (SAG)

Colorado State University and the City of Fort Collins formed a Stadium Advisory Group (SAG), per the terms of the IGA. The jointly appointed members are: • Danielle Clark, Executive Director of Communications, PSD • Gary Buffington, Larimer County Natural Resources Department Director • Bob Herrfeldt, Director, The Ranch Events Complex • Steve Taylor, Owner, Hot Corner Concepts • Per Hogestad, City of FOCO Landmark Preservation Comm. Member and Ret. CSU Architect • Colin Gerety, Owner, Momo Lolo Coffee House • Mitch Majeski, Pastor, Summitview Community Church • Ben Manvel, Former City Councilmember and Retired CSU Professor • Carol Reed, Sheely Neighborhood Resident

SAG has now completed 12 meetings since October 2015. The most recent meeting was held November 14, 2016. The meeting began with Doug Wilson with ICON and Fred Haberecht with CSU Facilities providing an update on the stadium and other construction projects on campus. Athletics Director Joe Parker and Gary Ozzello, CSU Director of Community Outreach and 363

Engagement, then facilitated a discussion with SAG members on designing and managing a grant application process for allocation of the Good Neighbor Fund.

Under the terms of the Intergovernmental Agreement (IGA) between CSU and the City of Fort Collins, the purpose of Good Neighbor Fund is to support efforts to lessen undesirable or unanticipated effects on neighborhoods from an on-campus stadium. CSU has committed up to $37,500 annually to the Good Neighbor Fund to be allocated and disbursed at CSU’s discretion based on recommendations made by the SAG.

At their October and November meetings, SAG discussed establishing core values to guide the grant submission and selection process. For example, SAG discussed these possible core values: 1) Community Character – a commitment to uphold and enhance the unique identities of the neighborhoods and larger Fort Collins communities; 2) Goodwill – a commitment to promote relationships of trust between adjacent neighborhoods and the CSU community; 3) Responsible Citizenship – a commitment to positively shape and improve neighborhoods for the benefit of all residents; 4) Impact – a commitment to offset or mitigate any identified or potential negative impacts to neighborhoods from an on-campus stadium, and to enhance, strengthen and protect the beauty, serenity, and security of neighborhoods directly impacted by the stadium; and 5) Leveraging – a commitment to multiply the impact of the grant by leveraging financial support of other sources or through collaboration and partnerships, when possible.

SAG also discussed the proposed timeline for accepting and making recommendations to the CSU Vice President of Operations for prioritizing and allocation of the fund:  July 1 – November 1, make application available to public  November 1-30, SAG hears applicant presentations and reviews grant applications  December – SAG presents it recommendations to CSU and City  January – Final approval/rejection of grant applications  January – March – Design and funding request/approval  March – June 30 – Implementation (unless already completed in prior months)

SAG will meet again in January 2017, but will continue (via email) to finalize grant criteria, core values and an application/selection process, and develop a plan for community outreach for soliciting grant submissions. Additionally, SAG members will attend internal/external open houses tentatively planned for January/February to be hosted by CSU and the City to inform the campus and Fort Collins communities about the final framework for game day operations. At those open houses, SAG members will discuss the Good Neighbor Fund, the IGA and their work-to-date on behalf of neighborhoods adjacent to CSU.

Game Day Experience Committee

The university formed a Game Day Experience (GDE) committee operating under Vice President Blanche Hughes. The jointly appointed co-chairs are: Blanche Hughes, Vice President for Student Affairs, Tom Milligan, Vice President for External Relations, and Joe Parker, Athletic Director. Approximately 20 other committee members represent a broad cross- section of university stakeholders including ASCSU, University Advancement, Parking and Transportation Services, the Faculty, AP and State Classified Employee councils, Athletics, 364

CSU PD, Facilities, CSU Health Network and Housing and Dining.

The Game Day Experience Committee continues to meet regularly to address the following topics in preparation for the opening of the on-campus stadium in August 2017:  Game Day Operations Framework (Parking/Transportation)  Law Enforcement – CSUPD, Landmark Yellow Jackets  Tailgating Programming and Marketing  Logistics for Spirit/Support Groups  Communications Update – Open Forums with Community and Campus Partners

The Game Day Operations Framework was presented in multiple open forum meetings with community and campus constituents soliciting feedback and suggestions. This feedback was incorporated this summer into more detailed executable plans (e.g., specific parking numbers per lot, final traffic patterns, tailgating policies, location of bike carrels, etc.) and has been presented at additional public forums during Fall 2016 (including a presentation to student government, the Deans, Cabinet, and the University Physical Development Committee.

The Committee completed its peer survey of institutions to develop a composite of best practices related to on-campus tailgating (students, alumni and guests), alcohol policies, reparking policies, facilities, safety, impact on campus (residence halls, recreation, conferences, etc.). Nine institutions were surveyed through phone interviews conducted by various campus units including Alumni, External Relations, Student Affairs, CSUPD, Off- campus Programs, Athletics, ASCSU, and New Student Orientation Programs. This information has been compiled into a report and used to draft a comprehensive plan for CSU related to these aspects of game day operations. The report and draft plan are currently under review by the President’s Office.

The Committee has also developed a plan for the operation of Ag Day utilizing the intramural field west of the Lory Student Center, Field #12, or commonly referenced as the Lagoon Field. The field is ideally situated and sized to highlight this important CSU tradition.

The Committee has scheduled two Community Open Houses to be hosted jointly by CSU and the City of Fort Collins. The open houses fulfill a provision of the IGA and provide an important opportunity to disseminate information. The format of each open house will include a Welcome Table with CSU Greeters equipped general information and six content-specific Information Tables including Parking, Transportation, Tailgating, Ticket Sales, Stadium Advisory Group (Good Neighbor Fund) and Fort Collins Road Construction Projects. The details for the open houses are as follows: CSU Faculty, Staff, and Students on Friday, January 27, 2017, 11:30 a.m. – 1:30 p.m. at Lory Student Center, Grey Rock Room and General Public on Wednesday, February 1, 2017, 6 – 8 p.m. at Drake Centre.

IGA (Intergovernmental Agreement) with City of Fort Collins

Twenty-six projects were identified in the original IGA. Since April 2015, fifteen have been built and or are nearing completion, seven are ready for construction or actively under construction, and four are in the design stage. Of the four projects in design, two items will formally be 365

deferred seeking data around the current conditions after the stadium is in use. The Lake and Center signalization and Lake and Center crossing improvements will be formally deferred in an addendum to the IGA and the city has agreed to the approach of monitoring the intersection for a year or so to determine focus of the design and eventual construction if improvements are deemed necessary. The remaining projects are scheduled to be delivered late summer or early Fall 2017.

The Shields and Elizabeth Underpass, the most significant of the remaining IGA projects, is moving forward agreeably. Property acquisitions and entitlements are in place, the design is complete and construction is well underway. Lane closures at Shields and Elizabeth have been administered through the City of Fort Collins and coordinated with athletic events at Moby. This underpass project is progressing very well, it is on schedule and on budget and represents highly coordinated and highly collaborative work between the City of Fort Collins and Colorado State University. Neighborhood update and coordination meetings will continue with the immediate community affected by this development. While challenges remain around the common potential for unforeseen conditions in heavy civil horizontal construction, all indications are good at this point that the project will be ready for pedestrians early this fall.

Hughes Stadium

Request for Proposal (RFP) – ICON is preparing the RFP document to present to the University for review and approval. The RFP draft is targeted for completion on February 10th and will contain the necessary and pertinent information relating to the property description, survey, physical condition, current zoning and title status. The RFP will consider both sale and ground lease options and the target date to release the RFP is March 10/2017.

City, County and Neighborhood Interface – ICON made contact with officials from the City of Fort Collins and Larimer County in October and presented our timeline and plan. The city agreed to provide contact information for the residents surrounding the Hughes Stadium property and also forward other pertinent information regarding zoning and annexation status and processes. ICON received that information January 5, 2017 and ICON is now preparing a written communication to residents and assessing the potential annexation implications. Proposals will be received and reviewed in late April. Candidates will be shortlisted and interviewed in May with a final ranking to be prepared in June.

366

Stadium: Naming Rights + Sponsorships toward Pro Forma

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% 167.8%1

FY18 $ Pro Forma % Met Naming Rights 1,060,167 500,000 212.0% Sponsorships 2,700,000 1,741,162 155.1% 3,760,167 2,241,162 167.8%

*The sponsorship pro forma amount used on this chart is the net amount of sponsorship revenue less sponsorship expense from the 2012 CSL study. Earlier versions of this chart used the 2012 CSL study gross revenue number for the sponsorship pro forma amount. The CSL study pro forma also included a sponsorship expense line equal to approximately 50% of gross revenue that accurately reflected the revenue share contract then in place with Nelligan Sports. CSU’s recent contract extension with Learfield moved the sponsorship model from a revenue share model to a guaranteed rights fee model. As a result, the full guaranteed rights payment is comparable to the CSL net number now set forth on this chart as the sponsorship pro forma amount. 367

Stadium: Naming Rights + Sponsorships toward CSL High

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% 1 110.6% 73.1%

FY18 $ CSL High % Met Naming Rights 1,060,167 750,000 141.4% Sponsorships 2,700,000 2,650,000 101.9% 3,760,167 3,400,000 110.6%

*The sponsorship CSL High amount used on this chart is the net amount of sponsorship revenue less sponsorship expense from the 2012 CSL study. Earlier versions of this chart used the 2012 CSL study gross revenue number for the sponsorship CSL High amount. The CSL study pro forma also included a sponsorship expense line equal to approximately 50% of gross revenue that accurately reflected the revenue share contract then in place with Nelligan Sports. CSU’s recent contract extension with Learfield moved the sponsorship model from a revenue share model to a guaranteed rights fee model. As a result, the full guaranteed rights payment is comparable to the CSL High net number now set forth on this chart as the sponsorship CSL High amount. 368

Stadium Total: Naming Rights + Sponsorships + Philanthropy

Naming Rights Sponsorships Philanthropy

100,000,000 90,000,000 86,400,000 86,400,000 86,975,000 86,975,000 80,900,000 80,000,000 70,000,000 41,600,000 41,600,000 42,175,000 42,175,000 60,000,000 40,300,000 50,000,000 40,000,000 36,000,000

30,000,000 34,400,000 34,400,000 34,400,000 34,400,000 21,000,000 34,400,000 20,000,000

10,000,000 15,000,000 10,400,000 10,400,000 10,400,000 10,400,000 0 6,200,000 Dec 2015 May 2016 Jul 2016 Sep 2016 Nov 2016 Jan 2017 *Note: Donations for naming rights for fiscal years 2018-2027 are included in "Naming Rights" total. Donations for naming rights receivable for fiscal years 2028+ are included in "Philanthropy" total. The Philanthropy total represents the philanthropic reserve coverage to service the stadium bonds, if needed. 369

Stadium Total: Naming Rights + Sponsorships + Philanthropy $86,975,000

575,000

36,000,000 44,900,000 5,500,000 Incremental

Dec 2015 May 2016 Jul/Sep 2016 Nov 2016/Jan 2017

0% 10% 20%*Note: Donations30%for naming40% rights for fiscal50% years 201860%-2027 are included70% in "Naming80% Rights" total.90% 100% Donations for naming rights receivable for fiscal years 2028+ are included in "Philanthropy" total. 370

STADIUM PREMIUM SEATING

#'s SOLD OF TOTAL CAPACITY

SUITES INDOOR CLUB LOGE OUTDOOR CLUB COMBINED

100% 100% 100% 100% 100%

90% 90% 90% 90% 90%

80% 80% 80% 80% 80%

70% 70% 70% 70% 70%

60% 60% 60% 60% 60%

50% 50% 50% 50% 50%

40% 40% 40% 40% 40%

30% 30% 30% 30% 30%

20% 20% 20% 20% 20% 3% 10% 10% 10% 10% 10% 0% 0% 0% 0% 0% 100% 100%1 100%1 100%1 100%1 100%1

Note: One suite held for naming rights partner 371

Income Statement Pro Forma as of November 2015

Revenues FY 16 Hughes FY 17 Hughes FY 18 FY 19 FY 20 Premium Seat Donations Priority Seat Donations Tickets and Parking Advertising/Sponsorship Naming Rights Miscellaneous Revenue Total Revenue

Expenses Salaries and Benefits Supplies General Operating Services Professional Services Repairs & Maintenance Utilities Game-Day Expenses Total Expenses Net Income

CSL Feasability Study Low Case 2012

Revenues FY 16 Hughes FY 17 Hughes FY 18 FY 19 FY 20 Premium Seat Donations Priority Seat Donations Tickets and Parking Advertising/Sponsorship Naming Rights Miscellaneous Revenue Total Revenue

Expenses Salaries and Benefits Supplies General Operating Services Professional Services Repairs & Maintenance Utilities Game-Day Expenses Total Expenses Net Income

Projected Pro Forma Net Income Variance Versus CSL Feasability Low Case (Line 18-Line 36) Positive (Negative)

Projected Bond Debt Service Coverage Net Income from Line 18 Contribution to Athletics from CSL Model Bond Payments Surplus(Shortfall) Stadium Donations from CSUF as needed Net General Fund Allocation

Philanthropic Coverage Beginning Reserve Balance New Funds Raised Reserve Deployed (= line 42) Ending Reserve Balance 372

CSU shares game-day plans for new stadium

Kelly Lyell , [email protected] Published 5:34 p.m. MT Jan. 27, 2017 | Updated 5:32 p.m. MT Jan. 28, 2017

Watch the Colorado State on-campus stadium come to life Courtesy of Colorado State University

Aaron Fodge, CSU's alternative transportation manager, explains how fans will be able to access the new on-campus stadium by bus, bike and foot during an open house Friday at the Lory Student Center.(Photo: Kelly Lyell/The Coloradoan)Buy Photo

Aaron Garcia wanted to know where he'd be able to tailgate and park on game days.

Jeff Beemer was concerned about whether there would be a place to check his helmet and other cycling gear that won't be allowed into CSU's new on-campus stadium.

Stacey Williams wanted to make sure she would still be able to get to her office at the U.S. Department of Agriculture off Centre Avenue between Colorado State University's main and south campuses if she needed to on a game day.

Their concerns, along with those of about 300 others, about game-day operations at the new on- campus stadium were addressed by officials from CSU and the city of Fort Collins during an open house Friday for the campus community at the Lory Student Center. 373

The same information will be offered during an open house for the general public from 6-8 p.m. Wednesday at the Drake Centre, 802 W. Drake Road. Details also are available online at stadium.colostate.edu.

Separate stations with maps and officials involved in the process were on hand Friday to answer questions about traffic and transit, parking, tailgating and how the university and city planned to manage other aspects of game-day operations when the $220 million stadium opens this fall.

"This is really the culmination of about two years of work cooperatively between the city and CSU to come with this plan, and now it's time to get those plans in the hands of our residents as well as Rams fans," said Gary Ozzello, the university's executive director for community outreach and engagement.

Campus planner Fred Haberecht suggested game-day parking and traffic won't be all that different from a typical school day, which brings 35,000 people to campus, other than the fact that they'll be coming and going in a shorter time frame. The new stadium will seat 36,000 with total capacity of about 41,000.

Garcia learned that he and his wife will be able to purchase a parking pass for a specific lot on campus with their season tickets, and they can choose from lots that will or will not allow tailgating, including the consumption of alcoholic beverages.

Doug Max, CSU's senior associate athletic director for facilities and event management, pointed out the various options that will be available on a map and noted that each parking pass will be accompanied by a map with driving directions to access that lot on game days. Officials hope there will be less congestion since everyone will know ahead of time what lot they're headed to and be armed with a map showing them the best route in and out.

Pay lots will be on CSU's south campus accessible only from the south, off Drake Road, and west, off Centre Avenue. The stretch of Centre Avenue north of the lots will be closed to all vehicle traffic other than shuttle buses.

"I didn't know where we would go," said Garcia, who works in CSU's facilities department. "… It's nice to know the plan. It sounds like it's pretty organized so far."

Parking in neighborhoods adjacent to campus will be restricted to those with residential or guest permits, said Jamie Moyer, a residential parking services coordinator for the city of Fort Collins.

Beemer lived in Boise, Idaho, for the past two football seasons and rode his bike to Boise State games. The school, he said, provided a place next to the stadium for cyclists to check their helmets, bike lights and other gear for free during games, since those items would not be allowed into the stadium on game days. He said he hoped CSU would have a similar option.

Williams and some of her co-workers had heard that CSU was leasing all of the parking at the federal buildings along Centre Drive for use on game days. After talking to campus planner Fred 374

Haberecht and looking over the maps, she learned that one of the lots would still be available for employees like herself who might need to work on the day of a game.

Nick Bohn, outreach director for CSU's student government, has been involved in discussions about the controversial re-parking plan that will require students in residence halls to move their cars to a south-campus lot on game days. Nobody, he said, is happy with that plan. But he believes they've reached a reasonable compromise that will allow students to access some campus parking lots during games.

"From what I've learned today, they've put a lot of thought into how they're going to get people on and off campus," Bohn said. "… I think they've listened to students' concerns in this process. I know students have a lot of concerns, and I know that students are not going to have all those concerns met. … That being said, finding a good balance is what I think we've seen today."

Follow reporter Kelly Lyell at twitter.com/KellyLyell and facebook.com/KellyLyell.news

Aaron Garcia talks to Doug Max, CSU's senior associate athletic director for facilities and events, about plans for parking and tailgating at the new on-campus stadium during an open house Friday at the Lory Student Center. (Photo: Kelly Lyell/The Coloradoan) Game-day Operations Open House

Officials with CSU and the city of Fort Collins will hold a public open house to share plans for game-day operations of the new on-campus stadium from 6-8 p.m. Wednesday in the West Ballroom of the Drake Centre, 802 W. Drake Road.

About 300 people attended an open house Friday at the Lory Student Center to learn more about plans for game-day operations at the on-campus stadium at CSU scheduled to open this fall.

375

Section 9 Consent Agenda

 Colorado State University System . Minutes of the December 8-9, 2016 Board & Committee Meetings

 Colorado State University . New Master of Addiction Counseling . New Graduate Certificate: Adult Basic Education . New Graduate Certificate: Sustainable Military Lands Management . Faculty Manual Section D.3.6, Section D.5.1, and Appendix 1 . Faculty Manual Section I.11

 Colorado State University-Pueblo . New Bachelor of Science in Wildlife and Natural Resources . Faculty Handbook Changes 376

BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY SYSTEM MEETING Colorado State University System, Denver December 8, 2016

CALL TO ORDER

Vice Chair Munn called the meeting to order at 9:01 a.m.

ROLL

Governors present: William Mosher, Chair (by phone); D. Rico Munn, Vice Chair; Scott Johnson, Secretary; Nancy Tuor, Treasurer; Dennis Flores; Mark Gustafson; Jane Robbe Rhodes; Dean Singleton; Joseph Zimlich; Andrea Buchmeier, Student Representative, CSU-Global Campus; Paul Doherty, Faculty Representative, CSU; Antonio Huerta, Student Representative, CSU-Pueblo; Daniela Pineda Soracá, Student Representative, CSU; David Volk, Faculty Representative, CSU-Pueblo; Tony Vrba, Faculty Representative, CSU-Global Campus

Administrators present: Tony Frank, Chancellor, CSU System, and President, CSU; Amy Parsons, Executive Vice Chancellor, CSU System; Lesley Di Mare, President, CSU-Pueblo; Becky Takeda-Tinker, President, CSU-Global Campus; Allison Horn, Director of Internal Auditing, CSU System; Lynn Johnson, Chief Financial Officer, CSU System, and Vice President of Operations, CSU; Rick Miranda, Chief Academic Officer, CSU System, and Provost and Executive Vice President, CSU; Michael Nosler, General Counsel, CSU System

System Staff present: Adam Fedrid, IT Manager; Melanie Geary, Executive Assistant; Allen Sneesby, IT Technician; Sharon Teufel, Executive Assistant to the General Counsel

Guests Present: Marc Barker, Director, Adult Learner and Veteran Services, CSU; Jon Bellum, Provost, CSU-Global Campus; Jean Christman, Attorney, Office of General Counsel, CSU; Johnna Doyle, Deputy General Counsel, CSU-Pueblo; Mark Gill, Chief of Staff, CSU; Kathleen Henry, President/CEO, CSURF; Blanche Hughes, Vice President of Student Affairs, CSU; Nancy Hurt, Managing Director, CSURF; Jason Johnson, Deputy General Counsel, CSU; Rick Kreminski, Provost, CSU-Pueblo; Ben Newsom, CSU Climate Reality Project; Brennen Rader, Senior Manager, CCG/Edgemoor; Tim Romani, CEO, ICON Venue Group; Tom Satterly, Facilities Management, CSU; Brooke Shelton, CSU Climate Reality Project; Maggie Walsh, Assistant Chief of Staff and Director of Veteran Initiatives, CSU

Vice Chair Munn convened the meeting in the absence of the Chair and reviewed the meeting agenda. He welcomed Governor Vrba, the new CSU-Global Campus faculty representative. General Counsel Nosler administered the oath of office to Governor Vrba.

PUBLIC COMMENT

Ms. Shelton and Mr. Newsom asked for support of a renewable and sustainable future for students.

COLORADO STATE UNIVERSITY CAMPUS REPORTS

Faculty Report: Governor Doherty indicated the written report summarized the last two Faculty Council meetings and work will continue in the spring on issues such as parking, course surveys and the budget. He thanked Dr. Frank for attending the recent Faculty Council meeting.

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Student Report: Governor Pineda Soracá reported on post-election communications; the work of the Student Fee Review Board; efforts to engage graduate students; collaborations to expand definitions of diversity to include virtual and physical accessibility; establishing an annual tradition to honor veterans in student government; digitalizing the test bank; funding of eight new bike share stations; an ASCSU mixer held with the City Council to engage on housing issues; and an ASCSU ambassador’s participation in the spring voyage of the Semester at Sea program. There is excitement for the opening of the new health center and the new stadium with efforts continuing to finalize game day policies.

President’s Report: Dr. Frank indicated the written report would stand as submitted and commented on discussions with the City of Fort Collins on transportation and housing issues. He asked Ms. Parsons for the stadium report.

Stadium Report: Ms. Parsons reported the construction remains within budget and on schedule. Highlights from the milestones were reviewed and Mr. Romani was introduced.

Mr. Romani provided a construction status update with the stadium to be completed prior to the first home football game on September 9, 2017. He reported the internal and external due diligence on the Hughes Stadium site has included completion of the phase 1 and phase 2 environmental site assessments with no identified problems. Discussions have been held with the Fort Collins city planner for assistance with the public outreach and engagement. Upon completion of the due diligence, the RFP will be distributed with a recommendation to be presented at the May Board meeting.

Ms. Parsons pointed out the written report includes updates on the stadium advisory group and the game day experience committee. All categories of stadium premium seating are now sold out.

CSU Veteran Programs: Dr. Frank remarked that the university has a long-standing, highly respected ROTC program and, since the mid-2000s, has significantly invested in veteran services and programs. He introduced Mr. Gill, a retired Air Force colonel, who has been leading the efforts. Mr. Gill announced that CSU recently received a No. 4 ranking from Military Times for programs and support of veterans. He then introduced Mr. Baker and Ms. Walsh.

Ms. Walsh described how military education is a tenet of the land grant mission; recounted how the Adult Learners and Veteran Services Office, and the Veteran Success Team were created; and provided an overview of the composition of CSU’s student-veterans. Mr. Barker explained the financial commitments, partnerships and donor support for CSU’s veteran programs; the recognition of student-veteran academic achievements through the National Honor Society; and the projections and planned activities for the future of veteran services.

ACADEMIC AND STUDENT AFFAIRS COMMITTEE

Committee Chair Robbe Rhodes noted the discussion topic is academic freedom and encouraged the Board to provide topics for future meetings. She then asked Dr. Miranda to begin his report.

Colorado State University Graduate Certificates: Dr. Miranda reported the coursework for the two proposed graduate certificates in Performance Management and Organizational Development within the College of Natural Sciences have been offered online for over five years. The action is to establish the bundling of the courses for the certificates that coordinate with the Master’s programs in Applied Industrial and Organizational Psychology. Approval is on the consent agenda.

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CSU-Global Campus Master of Science in Data Analytics: The new degree program requires completion of 36 credit hours and has received all of the campus curricular approvals. Board approval is on the consent agenda.

CSU-Global Campus Faculty Handbook Updates: The list of modifications is relatively extensive with the most substantive changes in the grievance processes. The revisions have been through the university’s approval process and reviewed by the Office of General Counsel. Approval is on the consent agenda.

Colorado State University Sabbatical Leave Requests: There were 45 sabbatical leave requests approved for AY 2017-18 which is within the normal range for the number of requests. Applications are reviewed through an established campus process and approval was previously delegated to the President by the Board.

Colorado State University Program Review Summary: Program reviews are focused on two basic elements: the quality of the degree program and the operational efficiency and effectiveness. There were 68 programs in four colleges reviewed last year. In addition to program reviews, the campus undergoes an overall HLC accreditation every ten years and there are specialized accreditations for various academic programs by professional societies.

CSU-Pueblo Sabbatical Leave Requests: There were 13 sabbatical leave requests for AY 2017-18 that were reviewed through the campus process and approved by the President as delegated by the Board.

CSU-Pueblo Program Reviews: Summaries for the eight programs reviewed in AY 2015-16 were provided in the meeting materials.

CSU-Pueblo Academic Calendar: The Board approved the revised 2017-18 academic calendar last year. The calendar presented for approval on the consent agenda extends the revisions for AY 2018-19 with only mandatory date changes.

Enrollment Reports: Reports for each of the three campuses were provided in the meeting materials.

Colorado State University: Highlights include an increase in the number of STEM degrees awarded and increased enrollment for non-resident students. Resident enrollment has been relatively flat which correlates with a decline in the number of exiting high school seniors. With the increasing Colorado population, the number of graduating high seniors is expected to rise. The impact of the student success initiatives is reflected in the increase in the retention rate to 86.2% and the highest four-year graduation rate in school history.

CSU-Global Campus: Enrollment has risen with a slightly higher increase in the number of graduate students. Other highlights include more students from outside of Colorado; an increase in the number of Pell students; age remains relatively stable; and retention and graduation rates have increased.

CSU-Pueblo: The campus is emerging from a challenging five-year period and freshmen enrollment increased in fall 2016. The 66% retention rate is the highest in school history and graduation rates have been relatively stable. The six-year graduation rate in the four demographic areas of non-resident WUE, African American, Pell eligible and a CCHE index of lower than 100 are below 25%.

Academic Freedom: Dr. Miranda commented the discussion topic is timely and the presentation was prepared with assistance from the Office of General Counsel. He explained how universities exist to promote the common good by advancing and disseminating knowledge that support the research, education and engagement mission. The knowledge mission relies on the principle of seeking evidence-

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based truth which may vary by disciplines. Faculty, the administration and students all have different roles and expectations which can create certain tensions. Academic freedom helps to advance knowledge and to develop independent critical thinking expertise for students.

The core concepts for academic freedom outlined in a 1940 AAUP statement and subsequent court cases have established the basis for the university’s role to provide the infrastructure and a conducive atmosphere for the advancement of knowledge. Each of the three CSU System campuses have a faculty handbook or manual that references the responsibilities and professional standards to create the culture and value of academic freedom.

Discussion followed on the topics of safe spaces and trigger warnings for classrooms; the concept of all ideas being equal; finding balance to preserve free speech in an inclusive learning environment; the value of diversity at institutions; and the fundamental principles to satisfy the overall mission of the university and promote the common good. When asked about CSU-Global Campus, Dr. Bellum responded that, while the modality is different than the other two campuses with the coursework focused primarily on professional fields, there are the same types of discussions particularly in some of the undergraduate courses such as sociology or psychology.

CSU-PUEBLO CAMPUS REPORTS

Student Report: Governor Huerta reported projects underway include renovation of the student commuter lounge; efforts to institute a Greek Week; funding for a new university mascot costume; sustainable water fountains; additional seating around the residence halls; five points of pride signs; the residence oval fire pit; and purchase of an additional swing set. On November 15th, the ASG celebrated its last meeting in the Occhiato University Center which is being shut down for renovation. External initiatives past and upcoming include partnering with other campus offices to invite the community to a Halloween Town; the upcoming Spring Concert; a presentation by Dr. Cornell West sponsored by the Center for Teaching and Learning; an early showing of the Before the Flood by the Biology Pre-Veterinary Club; and an opportunity for students to participate in a three to four-day leadership retreat.

Governor Huerta commented on student concerns after the recent national election and his commitment to unite the campus. Dr. Di Mare reported on meeting with students and a campus letter sent out to allay concerns with supportive efforts to be ongoing.

Faculty Report: Governor Volk explained a proposal initiated by the Faculty Compensation Committee to change the amount of the merit compensation increases and to provide separate cost of living adjustments. He commented on a recent Council of Chairs meeting and the excitement for new academic programming that reflect the university is moving in a positive direction. Future considerations should continue to include how the university is doing as an HSI and intentionality to emerge as an MSI.

President’s Report: Dr. Di Mare reported the university received a $6 million grant over the next five years from the U.S. Dept. of Higher Education to provide opportunities for HSI and lower income students to engage in STEM programs and $20 million in grants have been received over the past ten to fifteen years to provide opportunities for lower income and minority students. The Maestro program is doing an outstanding job and will be highlighted at the February meeting. While finances is the most cited reason for students dropping out of college, there are other issues and, as demonstrated by the retention of all 50 students who enrolled in a pilot summer program, pairing students with the right mentors can have an impact.

Dr. Di Mare announced an interim managing director has been hired for the Institute of Cannabis Research (ICR) which has been receiving national and global attention. The Governor included in his

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proposed budget an additional $900,000 for the ICR. Dr. Kreminski provided an update on the first annual cannabis research conference that will be held April 28-30, 2017.

Dr. Di Mare reported the HLC site visit will occur February 13-14, 2017. Dr. Kreminski indicated the two local Board members and the Board Chair will be participating. All documents for the HLC reaffirmation will be finalized by mid-January and, in addition to campus efforts, four external individuals have been reviewing the materials.

The meeting recessed at 11:40 a.m. for lunch with an alumni association presentation and the meeting reconvened at 1:00 p.m.

REAL ESTATE/FACILITIES COMMITTEE

The committee meeting was called to order and Governor Mosher joined the meeting via conference call.

Public Private Partnerships (P3): Ms. Johnson introduced Mr. Satterly and Ms. Hurt, and then provided an overview of what constitutes a P3; the spectrum for typical P3 structures; and common reasons for creating a higher education P3. By way of background, a P3 was considered for the new on-campus stadium and Brinkman, a northern Colorado developer, was engaged to assist with the examination of P3 options for development on the CSU Foothills campus. The due diligence recently conducted included participation at a P3 seminar and examination of four recent, ongoing higher education P3s.

Ms. Johnson reviewed the benefits of a P3 for CSU; outlined three phases that may occur concurrently; and described the approach utilized by the university. There is a current Request for Proposal process for this possible P3. Final presentation of designs by contractors are due December 19th and, based on the evaluation of the responses and the continuing due diligence, a recommendation could be presented at the February meeting. As part of the due diligence, there was a meeting with the leadership of the State Classified Council to explain why the university was considering P3s with no existing positions to be out- sourced. The Office of General Counsel and outside legal counsel are also providing assistance.

Dr. Frank clarified that both the program and financing plans for the IBTT project have been approved by the Board and a finalized P3 contract would not be fully drafted by the February meeting. Should the decision be made to move forward, the intent is to present an organized outline with an action item authorizing the CSU President, the CSU Vice President of University Operations and the Office of General Counsel to execute a contract within certain parameters, which is normal practice.

Ms. Johnson concluded the presentation by reiterating the benefits anticipated with a long-term relationship with a private developer. Governor Mosher commented on the positive opportunities that might be available.

When asked about cost comparisons for outsourcing operations and maintenance (O&M), Ms. Johnson explained there are statutory guidelines that include an estimate of the historical in-house O&M costs to create a benchmark. The contract would be with the developer whose responsibility is to contract the construction through a bidding process that would shift certain risks to the developer. Governor Tuor commented on the difference between managing the contract with performance metrics rather than the day-to-day management of the contractor.

When asked about comparisons to current P3s such as Todos Santos and Semester at Sea, Ms. Johnson responded that those two examples are academic partnerships with some similarities. When asked if the potential long-term lease arrangements for the O&M would be factored into the financial health of the institution, the response was there are new GASBs on lease accounting for capitalizing leases. As part of

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the due diligence, the impact to the financials and financial ratios with long-term lease arrangements will be evaluated.

In response to questions on risks, Mr. Satterly explained that, while there would be some new risks with O&M, many of the risks associated with the traditional design-build and O&M would be transferred to the developer; and the addition of O&M would potentially motivate the developer to build a better building with long-term quality. Dr. Frank explained the state’s boiler plate contract for design-build has requirements for performance and insurance.

Committee Chair Johnson reported there was a potential land sale resolution that would be discussed in executive session and action would be taken afterwards in open session.

EVALUATION COMMITTEE

Vice Chair Munn indicated the executive session for the Evaluation Committee would be convened first and then followed by an executive session for the Real Estate/Facilities Committee and to receive the litigation report. General Counsel Nosler read the meeting into executive session for the purposes of discussing and evaluating public officials and professional staff employees, confidential pursuant to statute as set forth in the meeting notice. Motion/Action: Governor Tuor moved to convene in executive session; Governor Flores seconded; and the motion carried unanimously. The committee convened in executive session at 1:47 p.m. and reconvened in open session at 2:58 p.m.

EXECUTIVE SESSION

General Counsel Nosler read the meeting into executive session for the purposes of discussions relating to the purchase or sale of property and to receive the litigation report and legal advice, all confidential pursuant to statute as set forth in the meeting notice. Motion/Action: Governor Gustafson moved to convene in executive session; Governor Robbe Rhodes seconded; and the motion carried unanimously. The meeting convened in executive session at 3:07 p.m. and reconvened in open session at 3:37 p.m.

REAL ESTATE/FACILITIES COMMITTEE (continued)

Committee Chair Johnson reported there was discussion on the action item during the executive session. With no additional questions, General Counsel Nosler read the matter for action on the sale of approximately .7 acres of land on the CSU Foothills campus. Motion/Action: Governor Robbe Rhodes moved to approve; Governor Gustafson seconded; and the motion passed unanimously.

CSU-GLOBAL CAMPUS REPORTS

Student Report: Governor Buchmeier explained that, with students in all 50 states and approximately 50 countries, the new Outreach Advocate Program is a formalized, supported networking opportunity to promote CSU-Global Campus and expand the network. The program was launched in mid-November and has an approved application process and training to ensure accurate messaging on CSU-Global Campus.

Faculty Report: Governor Vrba reported there have been several faculty development and interaction opportunities recently including a two-day faculty retreat. There was also a program advisory board meeting with industry experts to review curriculum and receive input to continue improving the academic programs.

President’s Report: Dr. Takeda-Tinker reported CSU-Global Campus has enrolled 4,400 new students during the first six months of the year; maintained a 1st to 3rd term retention rate of 80%-85%; and

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graduated 892 students in the first five months. Of the 17,204 active students, there are 2,639 military members of which 842 are active military, 1,380 veterans and 417 dependents. The non-military trimester retention is 82% and 80% for military overall with 73% for active, 82% for veterans, and 88% for dependents.

CSU-Global Campus representatives presented the institution’s quantifying quality and ROI paradigm at the UPCEA regional conference and also presented at the U.S. Distance Learning Association’s International Forum for Women, the ACBSP’s southern regional conference, and EDUCAUSE. CSU- Global Campus has already been selected to present in 2017 at EDUCAUSE on learning initiatives and at the HLC conference.

Discussion followed on the resurgence of the for-profit higher education sector; price point comparisons to the for-profit online sector that maximizes federal Pell funding and the military with no cap on the GI Bill; and the continued entry of for-profit higher education institutions in Colorado which has low entry barriers, oversight and regulation. Dr. Takeda-Tinker reported she will be in Washington DC in early February to share data with the Colorado delegation and to begin forging relationships with the new Dept. of Education staff. She has also met with local legislators to share the university’s status and recent data. More information will be forthcoming.

SYSTEM STRATEGIC MAPPING

Ms. Parsons reported each of the campuses would present an update on their strategic plans at the February meeting to lay the groundwork for the June retreat. Updates on the three work areas of the CSU System strategic map include:  Engagement and Community Building: The leadership of the CSU and CSU-Pueblo state employees and administrative professional councils convened to discuss best practices and priorities, and Mr. Feeley was present to talk about the upcoming legislative session. On events, there was a good presence from each of the campuses at the holiday gathering.  Academic Coordination: Students from CSU-Pueblo will be participating in classes at Todos Santos in the spring. CSU-Pueblo hosted a meeting with CSU representatives to discuss access programs to leverage resources for high school recruitment. Dr. Miranda reported the progress made since the meeting held with representatives from each of the three institutions on collaboration in six academic disciplines includes a proposal to combine resources for mini-grants to keep the initiative moving forward and a proposed collaborative social work advocacy event for 200 students.  Process Alignment: Ms. Parsons reported the three institutions have been working to align management of student information to help with enrollment and retention. Progress has also been made on a new integrated library system. CSU-Pueblo now has an electronic policy library that was created through collaboration with CSU.

A new AGB publication on board accountability for campus climate inclusion and stability was provided to the Board. Board members were encouraged to attend the national AGB conference to be held April 2- 4, 2017, in Dallas.

CHANCELLOR’S REPORT

Dr. Frank indicated the written report will stand as submitted and asked Mr. Feely to provide a state legislative update. Mr. Feeley provided a general overview of the election and potential impact on the state; the changes in the state legislature; and upcoming state legislative issues. Ms. Parsons provided a brief update on federal legislative issues and reported CSU is positioned to compete for funding through the recently passed 21st Century Cures Act.

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Dr. Frank commented on the concern at the campus level on potential impacts from the election on DACA students who can file a FAFSA but are ineligible for federal financial aid. He recounted the passage of Colorado legislative bill 13-033 in 2013 that allows students to receive resident tuition rates. There have been campus discussions, committees, a joint task force and a letter to the campuses to convey the CSU System’s support for DACA students. The issue will continue to be monitored.

The meeting then adjourned for the day at 4:26 p.m.

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BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY SYSTEM MEETING Colorado State University System, Denver December 9, 2016

CALL TO ORDER

Chair Mosher called the meeting to order at 9:03 a.m.

ROLL

Governors present: William Mosher, Chair; Scott Johnson, Secretary; Nancy Tuor, Treasurer; Dennis Flores; Mark Gustafson; Jane Robbe Rhodes; Dean Singleton; Joseph Zimlich; Andrea Buchmeier, Student Representative, CSU-Global Campus; Paul Doherty, Faculty Representative, CSU; Antonio Huerta, Student Representative, CSU-Pueblo; Daniela Pineda Soracá, Student Representative, CSU; David Volk, Faculty Representative, CSU-Pueblo; Tony Vrba, Faculty Representative, CSU-Global Campus

System Staff present: Adam Fedrid, IT Manager; Melanie Geary, Executive Assistant; Allen Sneesby, IT Technician; Sharon Teufel, Executive Assistant to the General Counsel

Guests Present: Stephanie Chichester, North Slope Capital; Johnna Doyle, Deputy General Counsel, CSU-Pueblo; Mark Gill, Chief of Staff, CSU; Kathleen Henry, President/CEO, CSURF; Margaret Henry, Treasurer, CSU System; James Lochhead, CEO, Denver Water; Blanche Hughes, Vice President of Student Affairs, CSU; Jason Johnson, Deputy General Counsel, CSU; Rick Kreminski, Provost, CSU- Pueblo; Karl Spiecker, Vice President of Finance and Administration, CSU-Pueblo; Jason Warr, Vice President of Operations, CSU-Global Campus

BOARD CHAIR AGENDA

CSU-Pueblo HLC Site Visit: Chair Mosher convened the meeting and asked Dr. Di Mare to review the details for the upcoming HLC site visit. Dr. Di Mare reported the site visit for the ten-year reaffirmation will be February 13-14, 2017, and Dr. Kreminski has chaired the campus steering committee to prepare for the review of nine different areas. Dr. Kreminski indicated the Board Chair and the two local Board representatives will be participating. Dr. Frank noted the details are being finalized with more information to be provided to the Board.

Recognition of Outgoing Board Member: Chair Mosher recounted Governor Zimlich’s contributions and thanked him for his service. Governor Zimlich shared reflections on significant accomplishments and lessons learned during his service, and expressed appreciation for the opportunity to serve. Dr. Frank announced a $500 scholarship in Governor Zimlich’s name will be awarded at each of the three campuses for fall 2017 and spring 2018.

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NATIONAL WESTERN CENTER (NWC)

Ms. Parsons reported the most recent issue of the newsletter was included in the meeting materials and a special edition will be issued featuring CSU’s participation at the upcoming National Western Stock Show (NWSS). She then reviewed the upcoming NWSS events. Other NWC updates include CSU hosted a two-day retreat with the partners; interviews were held to hire the outside project management team; and there is a legal team working on the governance issues. The Water Resources Center for which the Board previously approved the program plan will possibly be the first NWC project and will be an innovative partnership with Denver Water. Ms. Parsons introduced Mr. Lochhead.

Mr. Lochhead explained how the collaboration between Denver Water and CSU for the Water Resources Center evolved and commented on the synergy for research to address the numerous water challenges. A potential site has been identified and the due diligence will need to be completed.

Dr. Frank commented on how the partnership with Denver Water fits CSU’s outreach mission of research and education. Governor Gustafson announced that the NWSS will be taking over the Denver County Fair which will provide another collaborative opportunity for CSU. Chair Mosher remarked that the Water Resources Center will be a benefit to the NWC and commended Mr. Lochhead on the vision for the partnership.

AUDIT AND FINANCE COMMITTEE

Committee Chair Tuor convened the meeting and asked Ms. Horn for the audit report.

Status of Fiscal Year 2016-17 Audit Plan and Reports Issued: Ms. Horn reviewed the six audits currently in fieldwork and the three audits in review and conclusion. While the NCAA bylaws no longer require annual compliance audits, a meeting was held with the CSU Athletics Dept. and the decision was made to continue the annual compliance reviews. Executive summaries for the two reports issued since the last meeting were provided. The first report on the senior management transitional review audit for the CSU College of Business had no findings. The second report for the CSU Recharge Centers had five findings with recommendations to improve internal controls and documentation of billing rates.

Past Due Recommendations: There are no concerns with the new target dates established for the CSU Risk Management and Insurance, CSU Conflict of Interest and CSU-Pueblo Residence Life and Housing audits. The Internal Audit tracking system developed to track past due recommendations is working well with good responses and recently one of the auditors gave a presentation at a national conference on the system.

Reflecting on the positive experience of serving on a peer review team at Oregon State University, Ms. Horn commented that the CSU System Internal Audit is in line with good practices and the opportunity provided additional ideas on how to align compliance functions.

CSU System Debt Policy: Ms. Johnson introduced Ms. Henry, the new CSU System Treasurer. Ms. Henry reported the policy is being reviewed to simplify and ensure SEC bond compliance. The revised policy will be brought forward for Board approval at the February meeting.

Series 2016 A & B Bond Issuance: Ms. Henry commented on the experience of participating with the financial advisors at the bond sale in New York. Based on the market rates, the bond issuance with an overall 3.94% rate included $48.8 million for new construction projects and $26 million for refunding of series 2007A and 2007B with $2.4 million present value savings and $3.4 million in cash flow savings.

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CSU System Debt Capacity Review: Ms. Chichester commented that the bond issuance occurred on the best day since the November election. Total orders entered for the bonds were over $500 million that included CSU alums which reflects a positive perception of the CSU System.

Ms. Chichester explained how methodology and assessment of debt has evolved and currently the best indicator of debt capacity is aligned with the rating agencies’ view. As part of the Series 2016 financing, both Moody’s and Standard & Poor’s (S&P) were contacted. S&P had indicated in 2015 that the CSU System was at its debt capacity to maintain the current rating. However, based on improved operating financial results from 2015 to 2016, strategic investments, increased enrollment and donor support, and a great national reputation, the previous ratings were maintained by both S&P and Moody’s.

Ms. Chichester provided a five-year recap of the debt capacity and the current cumulative status with the recent bond issuance. When asked about peer comparisons both in Colorado and nationally, the response was the higher education sector as a whole has been under rating pressure with a negative outlook for a number of recent years and CSU is generally in the middle in terms of leverage. When asked about debt capacity and potential additional projects, Dr. Frank responded that tremendous progress has been made across the CSU campus with the new construction which should begin to taper off. The next major area to be addressed is deferred maintenance of infrastructure with a decision possibly needed in the future on whether to wait for funding from the State of Colorado or to take on the maintenance through additional debt issuance.

FY 2018 Governor’s Budget Request: Ms. Johnson reported the Governor is proposing several transfers and potential statutory changes to cover the $500 million gap between new costs and expected new revenue. The CSU System would receive $3.9 million of the $20.5 million new higher education funding proposed in the Governor’s budget; there is a 6% tuition cap based on the higher education funding model; and no funding is included for new capital construction projects. Dr. Frank noted the amount for higher education will not be confirmed until the General Assembly completes the budget process.

Campus Budget Updates: Ms. Johnson explained the budget format for the three campuses is the same as previous drafts.

Colorado State University: Ms. Johnson reported the draft FY 2018 budget includes three scenarios of 5%, 6% and 4.5% tuition increases for resident undergraduate students. A change from the previous drafts is inclusion of the proposed new state funding in the 5% model under new resources. A 2.5% increase in compensation has been factored into the draft budget and, for discussion purposes, information was provided on the impact of 3%, 3.5% and 4% salary increases. Funds are also included in the compensation line for the annual faculty promotion process; a half percent increase to the DCP retirement plan to reach the 12% goal; and to begin to address over a four-year period, where possible, the living wage concept for those employees making less than $30,000. Another line item noted was the internal reallocation of $3 million which is generally a re-budgeting exercise for the campus units.

Dr. Miranda explained the internal reallocation is approximately 1.2% of the overall E&G budget and he provided academic and administrative cost-cutting examples. Dr. Frank provided an historical perspective on internal reallocations and explained the academic incentive pass-throughs with tuition sharing arrangements for the academic units.

When asked about financial aid, Dr. Frank explained there are fixed financial aid policies with various scholarship programs including Commitment to Colorado and, as tuition increases, certain financial aid programs automatically escalate in accordance with the tuition level. Ms. Johnson added that the mix of students has been changing with more non-resident students who are eligible for Triple Crown scholarships available at three levels. Dr. Frank noted this is essentially tuition discounting for the non-

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resident students and not the utilization of existing revenues which is a model consistent with other public and private institutions.

Dr. Frank recounted the purpose of implementing differential tuition for juniors and seniors based on the criteria of high program demand, high costs to deliver programs and a high return on investment for the student. With the state returning to appropriation of tuition revenue through the JBC, there exists the potential to request a waiver on the tuition cap through the Dept. of Higher Education for a special additional tuition increment for differential tuition.

Colorado State University-Pueblo: Mr. Spiecker reported the draft budget format reflects the same 5%, 6% and 4.5% scenarios as CSU and, as in previous versions, includes a decline in enrollment to ensure the budget is as conservative as possible with the projections to be recalculated after the spring 2017 enrollment. A higher percentage of the CSU System’s portion of new state funding has been allocated to the campus than in previous years.

The budget modeling includes a 2.5% increase for state classified, faculty and administrative professional staff, and faculty promotions are included as a separate line item. Based on the equity study, $50,000 in base salary increases will be implemented in January 2017 and additional equity adjustments are planned for the next fiscal year. The University Budget Board previously analyzed a tuition differential model. With the change in tuition discounting for between 13 and 18 credit hours that was implemented this past year, no differential tuition modeling is included in the draft. The issue is being re-evaluated with an in- depth analysis to be brought forward at the next meeting.

When asked about the impact of the projected enrollment decrease, Dr. Kreminski explained a 2.6% decline translates to approximately 100 students; historically retention is relatively stable; and the variance that is harder to predict is generally with freshmen and transfers. Dr. Di Mare noted more retail around the campus and new degree programs will improve recruitment of new students. When asked about the enrollment recruiting firm, Dr. Di Mare responded that analysis is being done on continued utilization of the Royall & Company’s services with an annual fee of $570,000.

CSU-Global Campus: Mr. Warr explained how the projected FY 2018 E&G budget is prepared by analyzing current operations in context of enrollment and trends, monitoring on retention, and adjusting expenses accordingly. The financial results for the first quarter of the current fiscal year indicate projections are on track and no tuition increase is currently planned. There has been a slight enrollment shift with more new graduate students than new undergraduate students resulting in immaterial modifications to the current year’s budget and there have been some adjustments to planned expenditures. The overall projection for FY 2018 is a net increase of $6 million on the incremental E&G budget.

FY 2017 1st Quarter Financial Statements: Ms. Johnson reported there were no significant variances from the budget and there are net increases from FY 2015 to FY 2016 for each of the campuses. The FY 2016 audit report will be presented at the February meeting.

Reserves Report: Ms. Johnson explained the reserves report is based on the FY 2016 financial results and is in the same format as previously presented for FY 2015. In calculating the maximum available unrestricted net assets based on the E&G funds that does not include auxiliary operations, CSU-Pueblo made significant financial improvements from the prior year. The total E&G board reserves available for strategic deployment are calculated to be $33 million with CSU-Global Campus contributing $27.5 million.

Dr. Frank explained how the revised reserves policy ensures the necessary resources reside within the CSU System institutions to ensure the financial health of the campuses and are reflected on the

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consolidated financial statements. The action item is the first recommended draw against the reserves for approximately 10% of the reserve level. The request is consistent with the reserves policy to support the academic mission of the institutions of the CSU System and to address housing debt service payments at CSU-Pueblo. The funds will be used to support the CSU System IT initiative; to assist with the CSU- Pueblo housing debt payment for FY 2016 and FY 2017; the repayment of the CSU-Pueblo loan to CSU- Global Campus; and to establish five academic programs at CSU-Pueblo. Governor Zimlich noted the importance of using the funds for strategic initiatives and not just for budgetary shortfalls.

Dr. Di Mare expressed appreciation for the support and reported CSU-Pueblo will continue to explore new ways to generate revenue. The online construction management degree program will continue; a new MBA online program will be launched in February; and work continues to develop an online nursing program. Governor Volk thanked the Board on behalf of the CSU-Pueblo faculty.

Committee Chair Tuor commented that the action item is conservative and consistent with the intent of the policy. Motion/Action: Governor Mosher moved to approve; Governor Flores seconded; and the motion passed unanimously.

CSURF Capital Lease Renewal: Dr. Frank explained the action item to renew the CSURF line of credit option is required annually by statute. Motion/Action: Governor Johnson moved to approve; Governor Robbe Rhodes seconded; and the motion carried unanimously.

BOARD CHAIR’S AGENDA (continued)

Chair Mosher thanked General Counsel Nosler for his service. General Counsel Nosler expressed appreciation for the opportunity to serve the CSU System. Dr. Frank announced that a $500 scholarship at each of the three campuses in General Counsel Nosler’s name will be awarded for fall 2017 and spring 2018.

CONSENT AGENDA

Chair Mosher reported there was discussion in the executive session on a settlement resolution. Motion/Action: Governor Tuor made the motion to approve; Governor Zimlich seconded; and the motion passed unanimously.

Chair Mosher reviewed the items to be approved on the consent agenda. Motion/Action: Governor Robbe Rhodes moved to approve; Governor Tuor seconded; and the motion passed unanimously.

NEXT MEETING

Chair Mosher pointed out the next meeting will be held February 1-3, 2017, in the Athletic Field House on the CSU-Pueblo campus. With no further business to come before the Board, the meeting was adjourned at 11:31 a.m.

Board of Governors Meeting December 9, 2016 Page 5 of 5 389 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

New Degree Program: Master of Addiction Counseling, Plan C (M.A.C.)

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the request from the College of

Natural Sciences, to establish a new Master of Addiction Counseling (Plan C), in

the Department of Psychology. If approved, this degree will be effective Fall

Semester 2017.

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President.

CSU-Fort Collins – New Degree Program - Master of Addiction Counseling (Plan C)

390 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

Graduate Certificates

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the Graduate Certificates in Adult Basic

Education and Sustainable Military Lands Management.

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President

CSU-Fort Collins – Graduate Certificates

391 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

Graduate Certificates:

Warner College of Natural Resources Sustainable Military Lands Management – 9 credits

College of Health and Human Sciences Adult Basic Education – 9 credits

CSU-Fort Collins – Graduate Certificates

392 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

RECOMMENDED ACTION:

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President.

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

393 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

NOTE: Revisions are noted in the following manner: Additions - underlined Deletions - overscored

ACADEMIC FACULTY AND ADMINISTRATIVE PROFESSIONAL MANUAL REVISIONS AND ADDITIONS – 2016-17

D.3.6 Responsibilities for Ensuring Nondiscrimination Practices (last revised June 21, 2011)

D.5.1 Policy: Nondiscrimination and Affirmative Action (last revised June 21, 2011)

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

394 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

APPENDIX 1: Discrimination, Harassment, Sexual Harassment, Sexual Misconduct, Domestic Violence, Dating Violence, Stalking, and Retaliation (last revised August 7, 2015)

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

395 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Sections D.3.6; D.5.1 and Appendix 1

396 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

2016-17 Academic Faculty and Administrative Professional Manual Revisions: Section I.11 – Students Called to Active Duty

RECOMMENDED ACTION:

EXPLANATION:

Presented by Rick Miranda, Provost and Executive Vice President.

The proposed revisions reflect the current process that CSU follows to assist students called to active duty. Assistance is provided by the Adult Learner and Veteran Services office, not by CASA.

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Section I.11

397 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Consent Item

NOTE: Revisions are noted in the following manner: Additions - underlined Deletions - overscored

ACADEMIC FACULTY AND ADMINISTRATIVE PROFESSIONAL MANUAL REVISIONS AND ADDITIONS – 2016-17

I.11 Students Called to Active Duty (last revised May 5, 2005)

CSU-Fort Collins – Academic Faculty and Administrative Professional Manual Revision Section I.11

398

Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR ACTION:

New Degree Program: BS in Wildlife and Natural Resources.

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the request from the College of Science and

Mathematics to establish a new BS in Wildlife and Natural Resources. If approved, this degree

will be effective in fall 2017.

EXPLANATION:

Presented by Rick Kreminski, Provost and Executive Vice President for Academic Affairs, CSU-Pueblo.

1. Brief Overview of Proposed Program

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 1 of 13 399

Data are presented in section 3 below.

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 2 of 13 400

2. Mission Appropriateness

Colorado State University-Pueblo is a regional, comprehensive university with the following Mission and Vision Statements:

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 3 of 13 401

Goal 1: Excellent Academics

Goal 3: Transformative Opportunities

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 4 of 13 402

Goal 4: Supportive Student Life

3. Rationale for the Wildlife and Natural Resources Major

Current Students

We used a simple likert scale consisting of Very Interested (VI), Somewhat Interested (SI), Uncertain (U), Unlikely (UL), or Very Unlikely (VUL) for questions 1 and 2.

Our results are as follows:

Question Very Interested or Uncertain Unlikely or Very Totals Somewhat Interested Unlikely 1 95 22 30 147 2 96 21 30 147

Question Aquatic Terrestrial Unsure Total 4 66 51 30 147

Local High School Guidance Counselors

Bureau of Labor Statistics

Job Title Predicted growth 2014-2024 Conservation Scientists and Foresters 7% (as fast as average) Environmental Science and 9% (faster than Protection Technicians average)

Texas A&M Department of Wildlife and Fisheries Sciences Job Board: Snapshot of Two Week Job Postings (3/1/16-3/14/16)

4. CSU System and State Positioning

Within Colorado, there are three other Wildlife Programs in addition to CSU-Pueblo’s existing Wildlife option currently offered in the Department of Biology.

1. Colorado State University – Pueblo BS Biology, Environmental Biosciences Emphasis, Pre-Wildlife Option

2. Adams State BS Biology, Wildlife Management Emphasis

3. Western State BS Biology, Wildlife Emphasis

4. Colorado State University BS Fish, Wildlife, and Conservation Biology

Proposed Enrollments

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 7 of 13 405

5. Special Undergraduate Admissions standards

None

6. Curriculum and Program Outcomes

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 8 of 13 406

Curriculum B.S. Wildlife and Natural Resources Major

Proposed New Courses:

7A Potential Collaborations CSU-System

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 10 of 13 408

7B Potential Collaborations Non-CSU-System

8. Faculty resources

One new full-time Faculty

9. Library resources

No special library resources beyond those currently available are necessary. CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 11 of 13 409

10. Facilities, equipment, and technology

Recruitment We have also requested limited funding to support targeted recruiting (mailings, school visits, etc.) of new freshman students during the first three years of this new program.

11. Potential Collaborations

See above (7A and 7B)

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 12 of 13 410

12. Budget

Wildlife and Natural Resources Major Budget Year 1 Year 2 Year 3 Year 4 Year 5 Totals 2016 2017 2018 2019 2020 Personnel

Totals $121,057 $102,814 $99,625 $99,490 $104,473 $527,459

Approved Denied Board Secretary

Date

CSU-Pueblo New degree program: BS Wildlife and Natural Resources February 2017 Page 13 of 13 411

Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 Consent Item

MATTERS FOR CONSENT:

2016-2017 Faculty Handbook revision – section 1.2.5.5

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the proposed revision to the Colorado State University-Pueblo Faculty Handbook, section 1.2.5.5.

EXPLANATION:

Presented by Rick Kreminski, Provost and Executive Vice President for Academic Affairs, CSU-Pueblo.

INTRODUCTION

NOTE: Revisions are noted in the following manner: Additions – underlined Deletions – strikethrough

412

CSU-Pueblo Approval of 2016-2017 Faculty Handbook revision February 2017 page 2 of 2

413

Section 10

Executive Session

This section intentionally left blank

414

Section 11

General Action Items

415 Board of Governors of the Colorado State University System Meeting Date: February 3, 2017 Action Item

MATTERS FOR ACTION:

CSU-Fort Collins: Awarding of Honorary Degree

RECOMMENDED ACTION

MOVED, that the Board of Governors approve the awarding of an honorary degree,

Doctor of Humane Letters, Honoris Causa at the May 2017 commencement, to the

qualified individual identified and discussed by the Board of Governors in its executive

session.

EXPLANATION:

Presented by Tony Frank, President.

An honorary degree is among the highest honors a university can bestow upon an individual, and thus is reserved for those who have achieved extraordinary distinction and who have contributed in very significant ways to the betterment of our State, Nation, and our world.

The Honorary Degree Committee and the Faculty Council Executive Committee unanimously endorse this nomination.

______Approved Denied Scott C. Johnson, Secretary

______Date

CSU – Fort Collins Honorary Degree

416 Board of Governors of the Colorado State University System Meeting Date: February 2, 2017 Action Item

MATTERS FOR ACTION:

CSU-Fort Collins: Awarding of Honorary Degree

RECOMMENDED ACTION

MOVED, that the Board of Governors approve the awarding of an honorary degree,

Doctor of Humane Letters, Honoris Causa at the May 2017 commencement, to the

qualified individual identified and discussed by the Board of Governors in its executive

session.

EXPLANATION:

Presented by Tony Frank, President.

The Honorary Degree Committee and the Faculty Council Executive Committee unanimously endorse this nomination.

______Approved Denied Scott C. Johnson, Secretary

______Date

CSU – Fort Collins Honorary Degree

417 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

CSU: Approval of the Acceptance of Gifts and Naming Opportunities

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the acceptance of gifts and the naming in recognition of gifts relating to the Fireside Lounge within the College of Health & Human Sciences.

EXPLANATION:

Presented by Tony Frank, President, and Brett Anderson, Vice President for University Advancement.

The University allows the naming of specified facilities under its policy outlining the specific qualifications and procedures. The procedures require approval by the President of the University. Once the naming opportunity has been endorsed by the President, the President submits it to the Board of Governors for final approval.

To maintain confidentiality, the donors of the gifts and the specific naming opportunities are not identified at this time. A brief description of the gifts and the naming opportunities has been distributed to the Board members during the executive session.

The announcement of the gifts and the naming will be made by the appropriate unit.

______Approved Denied Board Secretary

______

Date

CSU-Fort Collins Approval of the Acceptance of Gifts and Naming Opportunity Page 1 of 7

418 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

CSU: Approval of the Acceptance of Gifts and Naming Opportunities

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the acceptance of gifts and the naming in recognition of gifts relating to the Stadium Club within the Department of Athletics.

EXPLANATION:

Presented by Tony Frank, President, and Brett Anderson, Vice President for University Advancement.

The announcement of the gifts and the naming will be made by the appropriate unit.

______Approved Denied Board Secretary

______

Date

CSU-Fort Collins Approval of the Acceptance of Gifts and Naming Opportunity Page 2 of 7

419 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

CSU: Approval of the Acceptance of Gifts and Naming Opportunities

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the acceptance of gifts and the naming in recognition of gifts relating to the Hall of Champions within the Department of Athletics.

EXPLANATION:

Presented by Tony Frank, President, and Brett Anderson, Vice President for University Advancement.

The announcement of the gifts and the naming will be made by the appropriate unit.

______Approved Denied Board Secretary

______

Date

CSU-Fort Collins Approval of the Acceptance of Gifts and Naming Opportunity Page 3 of 7

420 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

CSU: Approval of the Acceptance of Gifts and Naming Opportunities

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the acceptance of gifts and the naming in recognition of gifts relating to the Indoor Clubs within the Department of Athletics.

EXPLANATION:

Presented by Tony Frank, President, and Brett Anderson, Vice President for University Advancement.

The announcement of the gifts and the naming will be made by the appropriate unit.

______Approved Denied Board Secretary

______

Date

CSU-Fort Collins Approval of the Acceptance of Gifts and Naming Opportunity Page 4 of 7

421 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

CSU: Approval of the Acceptance of Gifts and Naming Opportunities

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the acceptance of gifts and the naming in recognition of gifts relating to the Coaches Terrace within the Department of Athletics.

EXPLANATION:

Presented by Tony Frank, President, and Brett Anderson, Vice President for University Advancement.

The announcement of the gifts and the naming will be made by the appropriate unit.

______Approved Denied Board Secretary

______

Date

CSU-Fort Collins Approval of the Acceptance of Gifts and Naming Opportunity Page 5 of 7

422 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

CSU: Approval of the Acceptance of Gifts and Naming Opportunities

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the acceptance of gifts and the naming in recognition of gifts relating to the Southeast Entrance Gate within the Department of Athletics.

EXPLANATION:

Presented by Tony Frank, President, and Brett Anderson, Vice President for University Advancement.

The announcement of the gifts and the naming will be made by the appropriate unit.

______Approved Denied Board Secretary

______

Date

CSU-Fort Collins Approval of the Acceptance of Gifts and Naming Opportunity Page 6 of 7

423 Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2017 ______Action Item Approved

MATTERS FOR ACTION:

CSU: Approval of the Acceptance of Gifts and Naming Opportunities

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve the acceptance of gifts and the naming in recognition of gifts relating to the President’s Suite within the Department of Athletics.

EXPLANATION:

Presented by Tony Frank, President, and Brett Anderson, Vice President for University Advancement.

The announcement of the gifts and the naming will be made by the appropriate unit.

______Approved Denied Board Secretary

______

Date

CSU-Fort Collins Approval of the Acceptance of Gifts and Naming Opportunity Page 7 of 7

424

Section 12

Real Estate and Facilities Committee

425

BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY SYSTEM REAL ESTATE/FACILITIES COMMITTEE MEETING AGENDA February 2, 2017 – CSU-Pueblo

EXECUTIVE SESSION

OPEN SESSION

1. Program Plan Approval for the Corbett-Parmelee Hall Dining and Corbett Lobby Renovation (Lynn Johnson) (Action)

2. Approval of Long-Term Project Development Agreement – Lynn Johnson (Action)

426 Board of Governors of the Colorado State University System Meeting Date: Feb 1-2, 2017 Action Item

MATTER FOR ACTION:

Approval of the Colorado State University Program Plan for the Corbett-Parmelee Dining

Center and Lobby Renovation for $10.1-$10.9M.

RECOMMENDED ACTION:

MOVED, that the Board of Governors of the Colorado State University System approves the Program Plan for the Corbett-Parmelee Dining Center and Lobby Renovation.

EXPLANATION:

Presented by Lynn Johnson, Vice President for University Operations.

Colorado State University is requesting approval of the program plan for the renovation of the Corbett-Parmelee Dining Center and the Corbett lobby. This project will renovate approximately 35,800 gsf encompassing the existing Corbett Hall lobby and the Corbett- Parmelee dining center. The dining center had a limited renovation in 2006, but it is now in need of extensive updates to bring it to current CSU dining standards. This project will result in a new dining destination featuring distinctive venues. It will serve the entire campus community by attracting students from all of our residence halls and inspire students who live off campus to purchase a meal plan. As part of the project the Corbett Hall lobby and entrance will be improved, similar to the Parmelee Hall upgrade done a few years ago. The estimated cost for the project is $10.1-$10.9M, to be paid from Housing and Dining Services revenue.

Colorado State University intends to procure this project through a target value design build lump sum project delivery method. The intent is to encourage innovation and ultimate value by allowing great flexibility in the specifications, with code minimum requirements as the base bid and upgrade to CSU standards as part of the scope ladder. Initial graphic concepts from this program plan will be included in the RFP for information only. Total Development Costs have been allocated to various components of the project to come up with a Target Development Cost of $10.5M. The intent of this procurement method is for the design build firms to use the concepts as a standard of care in developing their own innovation and cost effective solutions to the design problem and RFP as stated both in narrative and graphic form.

A more detailed project description can be found in the attached Summary of Program Plan, and the full program plan is posted at www.facilities.colostate.edu.

Corbett-Parmelee Dining Center and Lobby Renovation 427 Board of Governors of the Colorado State University System Meeting Date: Feb 1-2, 2017 Action Item

SUMMARY OF PROGRAM PLAN FOR THE CORBETT-PARMELEE DINING CENTER AND LOBBY RENOVATION

This project will renovate approximately 35,800 gsf of the existing Corbett Hall lobby and the Corbett-Parmelee dining center. The dining center had a limited renovation in 2006, but it is now in need of extensive updates to bring it to current CSU dining standards. As part of the project, the Corbett Hall lobby and entrance will be improved, similar to the Parmelee Hall upgrade done a few years ago. Housing and Dining Services anticipates that students from all residence halls will want to utilize the dining center and that it will encourage students living off campus to purchase a meal plan.

The Dining Center renovation will result in a collection of inspired food offerings brought together in a shared space. This hybrid food hall concept plays on the popularity of foodie collectives. Venues will have distinct branding, serving, and seating areas that support our “all- you-care-to-eat” model with an open concept (i.e. walls on the sides to distinguish between venues with open fronts so students can easily see and move between all of the venues). It will have food-hall-style community seating (community tables, high-top seating, etc.) around the venues with shared beverage stations. Target fund allocation for this component is $2.35M.

The kitchen and back of house equipment will be upgraded with this project, with reuse of newer equipment such as the dish machine. Target fund allocation for this component is $7.0M, including cooking equipment at the various venues.

In addition, an inclusive “living room” for the 900 students who live in Corbett (largest residence hall on campus) is required. Corbett currently lacks a welcoming and open front desk and ﬂexible gathering and social spaces, including a community kitchen, social areas, quiet study niches and seminar rooms. The Corbett courtyard has recently been renovated and offers an active and attractive pedestrian area, but the building lacks a well-defined exterior entrance from the courtyard. The courtyard is closed to vehicular trafﬁc so there is an opportunity to create an attractive indoor/outdoor connection. Target fund allocation for this component is $1.15M.

The estimated project cost is $10.1-$10.9M, with a target total development cost of $10.5M, to be funded through Housing and Dining services revenues. The construction schedule is constrained, from spring break (early March) 2018 to the end of July 2018 in order to have the dining center ready for students by mid-August.

Approved Denied Board Secretary

Date

Corbett-Parmelee Dining Center and Lobby Renovation

428

10 4

17 17 19 17

20 15 14 17 18 10 13 17 21 17 4 1 ENHANCED MAIN ENTRY 2 12 4 16 2 EXISTING VESTIBULE 3 FACADE ENHANCEMENTS 4 CONTROLLED ACCESS 8 5 LOBBY 8,000 SF New Entry, Front Desk, 11 10 8 9 22 Lounge, Mail Room, Staff Offices,

5 6 Kitchen Collective, Restrooms 6 FRONT DESK, MAIL 4 7 PRIVATE RD APARTMENT to remain 3 8 STAFF OFFICES / MEETING 7 9 NEW GENDER NEUTRAL RESTROOMS 2 10 GREEN WALLS SEPARATION 1 11 KITCHEN COLLECTIVE 12 REVISE EXISTING RESTROOMS TO INCLUDE GENDER NEUTRAL FACILITIES 13 FLEXIBLE PRIVATE DINING (70 Seats) 14 EXISTING SERVER ROOM to remain 15 STORAGE ROOM to remain

16 DINING/ SEATING 14,300 SF (600 Seats) 17 DISTINCT VENUES 18 DISTINCT VENUE KOSHER to remain 19 WARE WASHING 20 PRODUCTION AREA 13,500 SF Distinct Venues, Back of House Kitchen, Ware Washing, Offices, Storage, Freezers, Lockers, Restrooms 21 LOADING / SHIPPING AXONOMETRIC 3D VIEW - PROGRAM PLAN 22 LANDSCAPED VIEW GARDEN

429

Board of Governors of the Colorado State University System Meeting Date: February 1-2, 2016 Action Item

MATTERS FOR ACTION:

Long Term Project Development Agreement with master developer to build-out South Campus and Foothills Campus and provide related operation and maintenance services

RECOMMENDED ACTION:

MOVED, that the Board of Governors approve a Project Development Agreement (PDA) with Tetrad Property Group (Tetrad) for the build-out of designated areas of the South Campus and Foothill Campus in phases over a ten to fifteen year period, with Tetrad also responsible for the operation and maintenance of the new buildings for up to a thirty year term.

FURTHER MOVED, that the President or the Vice President for University Operations of Colorado State University is authorized to sign implementing contracts and other documents necessary and appropriate to consummate these transactions with modifications made in consultation with General Counsel.

EXPLANATION:

Presented by Dr. Tony Frank, President, Colorado State University

As presented to the Board in December 2016, the University has completed a master plan for the build-out of certain areas of the South Campus and Foothills Campus (the “Project”). The first phase is the construction of the IBTT Building and the 48 stall equine research horse barn and related infrastructure. On December 22, 2016, Tetrad Property Group was selected as the developer for the Project. The University and Tetrad have entered into an Exclusive Negotiation Agreement whereby they will move forward with preliminary design work for the first phase while finalizing the terms of the Project Development Agreement (PDA). Each phase will be constructed using the standard State of Colorado Design Build Lump Sum Agreement – SC8.0 and SC8.1. As directed by the Office of the State Architect policies and procedures and in conformance with associated statutes, Tetrad will be required to competitively procure subsequent phases of the development plans to the Architectural, Engineering and Construction, (AEC) industry. Upon completion of each new building, Tetrad will be responsible for certain long term operation and maintenance obligations as described in detail in the PDA.

CSU – Public Private Partnership Utilizing Master Developer Services 430

______Approved Denied Board Secretary ______Date

CSU – Public Private Partnership Utilizing Master Developer Services 431

Section 13

Evaluation Committee

This section intentionally left blank 432

Section 14

Meeting Evaluation

This section intentionally left blank 433

APPENDICES

 Appendix I: Construction Reports

 Appendix II: Correspondence

 Appendix III: Higher Ed Readings

434

APPENDIX I

Construction Status Reports

435

COLORADO STATE UNIVERSITY - PUEBLO

CONSTRUCTION PROJECT STATUS REPORT

Total Budget & Funding Construction Project Scheduled Completion STATUS as of 01/18/2017 Description Source Start

Corridor Extension $856,260 Student Rec. @Student Recreation Construction Completed January 2012 Ctr. Fee Center

South Campus Entry $1,062,500 Student Fee-- Drive, Parking Addition, $300,000 Parking Foyer addition, Internal funds---$301,000 Construction Completed Februrary 2012 Renovation @ Buell Building Communication Center Repair/Replacement-- Building $462,500

Occhiato University Center Schematic Design completed. Design Development Phase completed. GMP established, Notice to Proceed to Commence Construction issued Novemeber 3, 2015. All Bid Packages 1 ,2, 3, underway- -(Earth work, utilities, foundations, steel frame, elctrical, $35,000,000 Debt to be Occhiato University plumbing, HVAC, finishes) Design- repaid with student fee Center Renovation and Build Team of Nunn Construction/hord-coplan-macht Architects. Phase 1 (New facility fees, grants, & Addition Addition) 100% complete, occupied November 28, 2016. Phase 2 (ACM Abatement auxiliary services revenue began Dec. 5, 2016. On schedule for February 6, 2017 completion, then Phase 2 Renovation will begin. Entire project approximately 55% overall complete to date. Project Completion estimated 03/2018 Add electronic card access/monitoring, new Project under budget and on schedule. 11 buildings are Exterior Door Security keyways, and replace worn exterior live on-line.Project is Complete Access Control at all $998,351 Controlled 12/2015 entrances at 11 academic buildings. Academic Buildings.Phase Maintenance II

Completion July 28, 2015. On time and on budget. New General Classroom $16000000 Capital Construction Start 06/14 Classes are in process.. G H Phipps Construction Building Funds Completion 07/15 Co., General Contractor hord-coplan-macht Architects

Construction began 3/2014, Completion Phase 2 (building) 100% complete. Occupancy on $3,100,000 cash funded Phase1 field and February 1, 2016 Press box Completed Soccer/Lacrosse Complex project from grants and bleachers June 2014, 6/1/16 (Phase I-- donations Phase 2 Building Synthetic turf field--- completed and in use.) completed February 1, H. W. Houston General Contractor 2016 436 CSU FORT COLLINS-CONSTRUCTION STATUS OF BOND FUNDED PROJECTS Project Status as of 1/17 Multipurpose $220,000,000 August 2017 This project will construct a multi-use Stadium stadium on main campus. Stadium Total Budget: Revenue Project is in budget and on schedule. $220,000,000 Construction is approximately 77% complete. GMP in place with associated contract amendment fully executed.

Stadium Alumni $18,500,000 August 2017 This project consists of approximately and Academic 82,000 gsf of classroom, advising and Space General Fund Alumni Center space. and Alumni Total Budget: Construction is proceeding concurrent $18,500,000 with the Stadium project.

COLORADO STATE UNIVERSITY- FORT COLLINS

437 Project Status as of 1/17 Health and $49,000,000 May 2017 This project will construct an Medical Center approximately 161,000 gsf medical Hartshorn center with 27,500 gsf on the 4th floor Health Center unfinished to accommodate future Total Budget: growth. $56,100,000 Remaining funding from Project is in budget and on schedule. donations - Exterior glazing, interior framing and Columbine MEP are underway. Construction is Center for approximately 74% complete. Healthy Aging and UC Health Biology Building $70,000,000 July 2017 This project will construct an approximately 152,000 gsf biology Total Budget: Student Facility building. $70,000,000 Fee, General Fund and Project is in budget and on schedule. Donations Interior framing is 95% complete and MEP is underway. Construction is approximately 70% complete.

Prospect Road $6,000,000 Phased This project constructed a bike and Underpass through pedestrian underpass at Center Ave Parking and November and Prospect Road. Total Budget: Transportation 2016 $6,000,000 Services Project is in budget and complete.

COLORADO STATE UNIVERSITY- FORT COLLINS

438 Project Status as of 1/17 $5,400,000 July 2017 This project will construct an Chemistry approximately 61,000 gsf chemistry Building General fund building.

Total Budget: All phases of state funding have been $56,566,618 State funding: received. Project is on schedule and $51,166,618 in budget. Glazing, interior framing and MEP are underway. Construction is approximately 72% complete.

Institute for $9,600,000 March 2019 This project will construct an Biologic approximately 130,000 gsf research Translational General fund building and a 48 stall research horse Therapies and barn on South Campus. Research Horse Remaining Barn funding from Public Private Partnership (P3)

Total Budget: donations and developer has been selected, pending $77,800,000 State COP. Board of Governors approval.

Michael Smith $5,000,000 August 2018 This project will construct an Natural approximately 37,400 gsf addition to Resources General fund the Warner College of Natural Addition Resources. Remaining Total Budget: funding from Design Build team has been selected $20,200,000 donations and and are currently working through Student Facility contract and schedule dates. Expect Fees. construction start in mid-May 2017.

COLORADO STATE UNIVERSITY- FORT COLLINS

439 Project Status as of 1/17 Shields and $10,800,000 August 2017 This project will construct a bike and Elizabeth pedestrian underpass at West Underpass General Fund Elizabeth Street and Shields Street.

Total Budget: Design Build team has been selected $10,800,000 and construction is underway. Project

is approximately 22% complete.

Richardson $5,500,000 January 2019 This project will construct an Design Center approximately 41,000 gsf building to General Fund house interdisciplanary design Total Budget: programs. $16,500,000 Remaining funding from Project is in preliminary procurement. donations

Global Food All funding from August 2018 This project will construct an Innovation donations and approximately 36,600 gsf food animal Center in Honor General Fund handling and meat processing facility of Gary & Kay addition to Animal Sciences. Smith

Project is in preliminary procurement. Total Budget: $13,100,000

COLORADO STATE UNIVERSITY- FORT COLLINS

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APPENDIX II

Correspondence

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CSUS Board of Governors Correspondence Received [dates] Date Received Email/Letter From Subject Response December 6, 2016 Email Logan Gannon Unpaid Internship 12/9/16 January 9, 2017 Email Bob Stadium 1/10/17 Vangermeersch January 24, 2017 Email Courtney Taylor Parking 1/24/17

442

Geary,Melanie

From: Robert Hersh Sent: Tuesday, December 06, 2016 5:10 AM To: [email protected]; CSUS Board; Geary,Melanie Subject: Student complaint directed to all members of the Board of Governors

To The Chancellor and Ladies and Gentlemen of the Board of Governors of the Colorado State University system:

My name is Logan Gannon. I am a student of the great institution of Colorado State University, and I'm just one unpaid internship short of receiving a degree in Music Therapy. I am writing this letter to respectfully protest your policy of charging tuition and multiple other fees for the "privilege" of working at a full time unpaid internship.

I recently submitted a formal student complaint to the dean of Student Affairs, and while I have not yet received a written acknowledgement, I did receive a phone call from a Mr. Henderson, the Assistant Dean of Students/Director of Parent and Family Programs. He is suggesting that some of the lesser fees may be reduced. It occurred to me that what I am asking for, which is a significant change in University policy, might be better addressed by a direct appeal to the Board of Governors. I'm sure my situation is similar to many other students at many different universities. I recently completed all necessary classwork in the CSU School of Music, with a focus on Music Therapy and maintained a 3.1 GPA. My only remaining requirement is the completion of a six-month internship, which I secured in Denver. So I am spending 35-40 hours a week working without any income, at an internship that requires extensive use of my own vehicle, including gas and maintenance, while I pay for food and rent in Denver. I have not even been on the CSU campus since my "graduation", and I no longer reside in Ft. Collins. My education at CSU has come at significant cost to my family and I, but now I am faced with another bill from CSU for an additional $1,576.69. My complaint is that these charges are unreasonable and possibly illegal. Students shouldn't pay for a service that the school doesn't provide, and shouldn't have to pay for the privilege to work. The Fair Labor Standards Act establishes safeguards for workers; especially with reference to financially disadvantaged groups. I'm uncertain as to whether the practice of charging for an unpaid internship has ever been challenged under this law, but the time may be ripe. As you probably are aware, the frustration with the incredibly high cost of education, as well as the practice of assessing outrageous fees on interning students is growing nationwide. Furthermore, a few years ago the US Congress enacted a law entitled " 20 USC 1015a: Transparency in College Tuition for Consumers." The law requires the university to be plain and simple in the discussion of tuition-related issues. A tedious examination of the online catalog reveals nothing that I could find about the requirement to pay tuition for unpaid internships. I understand that the currently accepted policy is widespread among many schools, but that doesn't make it right. I hesitate to use language that others across the country have, but calling this practice an "exploitation of a financially disadvantaged class", does not seem unreasonable to me. I don't believe it's fair of the University to accept all of our money over the past five years, and then take the position that, until I pay the school for an internship, (that I obtained on my own and for which no professor or classroom was provided) I may not be allowed to sit for my certification exam. I understand that the school depends on all of its streams of revenue to survive, and many would say that CSU can't give that up. Just like any other large institution, CSU may sometimes fall into a trap that

1 443 forces it to look only at the bottom line. But Colorado State University is a place of higher learning and we need to separate ourselves from those whose primary concern is to seek revenue at every opportunity, whether it's right or wrong. Please do the right thing and make us proud of this great University for taking the lead in stopping the practice of assessing tuition and other unreasonable fees under these circumstances.

Respectfully, Logan Gannon Class of 2016

2 444

Geary,Melanie

From: Neth,Cara Sent: Friday, December 09, 2016 3:20 PM To: [email protected] Cc: Geary,Melanie; [email protected] Subject: RE: Student Complaint

Dear Logan,

Thank you for sharing your concerns with the Board of Governors; I have been asked to respond on their behalf. While we certainly understand your frustration with paying tuition and fees for an off‐campus internship, the internship is actually an academic requirement of your program. As such, it is just like any other class you would take through your department, in that you must pay tuition and fees to earn academic credit for the experience. Although we allow students to voluntarily “walk” in graduation ceremonies before having completed the last steps toward a degree, you have not actually graduated until you complete this final course. Clearly, this seems hard to understand when you are no longer living in Fort Collins, but the charge for the course isn’t determined by where you are located but by the course itself. Internships and capstones are culminating and synthesizing experiences that are intended to reflect the aggregate knowledge and skill set acquired throughout the course of study in the major. While participating in an internship, you are still a CSU student, with full access to the CSU network and student services, some of which – like career and legal services – are widely used by students living off campus. And, while not fully visible to you as a student, assuring that your internship meets and fulfills the requirements of your degree program does require work and involvement of both academic and administrative staff in your department. Students involved in such experiences also continue to be eligible for financial aid assistance, just as they are for other types of classes.

Out of concern for your individual situation, John Henderson in our Vice President for Student Affairs office did work to get some of your fees waived this semester, as he has communicated to you. We sincerely regret that this experience is proving to be a hardship for you. If it is any comfort, there is significant data showing that completing such an internship is critical to a student’s post‐graduate success. In the field of music therapy, this is so important that it is a specific requirement of the department’s accrediting agency. We believe and hope the experience will serve you well in the long run.

Cara

Cara J. Neth Director, Presidential and Administrative Communications Office of the President Colorado State University

1 445

Geary,Melanie

From: [email protected] Sent: Monday, January 09, 2017 2:25 PM To: CSUS Board Subject: see letter below for the board

Open letter to the Colorado State University Board of Governors and elected officials. From: Bob Vangermeersch Fort Collins CO. 970-223-0493 Jan. 10-2017

1, HOW DID CSU CONVINCE THEIR BOARD TO BUILD A STADIUM? The CSU report to the NCAA (FY 2015) showed the University needed to subsidize the Athletics department by OVER $20 M to prevent a deficit! On August 7, 2016 CSU President Tony Frank reported an entirely different deficit to the Board: ''We are now in a situation where these budgets (Athletics) are running a slight deficit.'' ($3.2 M) It appears the university has TWO sets of books for the Athletics Dept. one for the NCAA and another for the board. Accounting irregularities? 2 .WHAT IS THE REAL COST TO BUILD A FOOTBALL STADIUM? The University wants us to believe the cost is $220 M but the reality is that CSU borrowed $239 M. To this we must add the cost of new parking, two pedestrian underpasses, upgraded utilities, moving the PERC facility, upgrades to Prospect St. and project overruns, which equals $60 M. The University will also duplicate the existing football practice fields at an added cost of $3M. The total cost is over $280 M. 3. WHAT IS THE ''BREAK EVEN'' revenue needed?? The CSU Board of Governors policy states: '' All debt financed projects must show revenue stream to cover debt service and added operating costs.'' Starting in FY 2021 the debt service is $12,172,000. The added cost to operate the new facility is $2.8 M and the loss of revenue from the old stadium is $3.6 M. If we add in another $2M for debt service of the other projects, break even revenue comes to $20.5 M per year. The University recently bragged about selling the premium seating at $3M per year. If we assume they sell out the non student seats at $30 each that's $3.75 M. The naming rights to the field is $.5 M a year over 40 years. Even if CSU can get a million dollars a year for stadium naming rights they are $10 M short of breaking even. 4. WHERE WILL CSU FIND THE REVENUE NEEDED? Surely they will not pilfer millions of non-designated philanthropic donations to bail out this financial fiasco. Will it really come to athletics over academics?????? WHAT ARE YOU DOING TO ENSURE CSU SPENDS THE TAXPAYERS SUPPLIED $135,000,000 WISELY

1 446

Geary,Melanie

From: courtney Taylor Sent: Tuesday, January 24, 2017 1:44 PM To: CSUS Board Subject: CSU Accountability for project planning Attachments: CSU Phys Devl 2017-01 presentation.pdf

Hello- Please see the attached slide deck (specifically slide 24) for a figure of CSU's Fort Collins "potential" parking permit zones for football games. This presentation was distributed to CSU students with text that quote "We're still trying to figure out where people will park on 'game days'."

As an alumni, tax payer, community member, resident, and property owner (not of property in the currently proposed parking zone), I am frustrated that the planning process for such a major campus development initiative has not been held accountable for basic planning and financial suitability. Furthermore, it is confounding that this project occurred with the Board of Governor's approval. Isn't it a primary tenant of your mission to question unsound financial investments that are poorly planned and clearly a 'pet project' of a small faction?

This extremely poor decision of the CSU President, Tony Frank, and the lack of oversight of the Board of Governors, will hamstring the campus's financial viability for decades to come.

My questions are: 1) To what extent is the Board of Governors working with CSU to minimize stadium construction and operation costs and focus future financial investments on funding for education? The corollary is: How is the Board of Governors going to oversee CSU's mitigation of this adverse financial investment to maintain a similar relative cost without affecting quality of education or faculty? 2) what issues related to stadium traffic, parking, noise, litter, light pollution, and public drunkenness are being reviewed by the Board of Governors? 3) how will the Board of Governors engage\oversee the planning for the decommissioning of the current stadium? 4) What is the planned process for the Board of Governors to participate in decision making related to stadium concerns?

I am planning to advocate that the City of Fort Collins decline community support to CSU. One such current item on the table is to allow parking in the adjacent communities. Instead the City should require parking exclusively on-campus or via CSU-funded transportation rather than allowing CSU to transfer the financial and other cost burden to the City and community. I feel very strongly about this since CSU acknowledged from the outset of this project the difficulties with parking and traffic and intentionally under-scoped solutions (such as building additional parking structures). This misrepresented the true financial impacts of the project: costs which should not be passed on to the community.

As an alumni, I will never donate funds to a system that invests in such poor financial decisions. In further protest of the poor decisions, lack of truthfulness and lack of oversight that allowed this to occur, I have also made the decision to not attend a game or event at the new stadium.

Thank you for your responsiveness to my concerns, Much appreciated,

1 447 Courtney Taylor

2 448

APPENDIX III

Higher Ed Readings

449

WHEN COLLEGE WAS A PUBLIC GOOD The Chronicle of Higher Education; 11/27/2016 College used to be considered a public good and many government assistance programs – from the Morril Act to the GI Bill – helped provide access to higher education for much of the populace that would otherwise be left behind. But this was also a time when the majority of the country was white and the majority of the population availing themselves of government assistance was also white. As the minority population grew, views on higher education shifted, and the Reagan administration was instrumental in beginning the roll back of funding for Pell grants and other forms of tuition assistance, relied on mainly by low-income – and increasingly minority – families. Whether there is causation here is not agreed upon, but the outcome has been that while the minority population has grown and the percentage of potential minority students has grown, federal and state support for higher education is increasingly seen as a handout rather than a leg up, and the ideal of an educated citizenry is at risk.

MOST COMPUTER SCIENCE MAJORS IN THE U.S. ARE MEN. NOT SO AT HARVEY MUDD Los Angeles Times; 1/4/2017 At Harvey Mudd, students are required to take an introductory computer science course and the entire program has been revamped to be less intimidating and more welcoming to female students/would-be programmers: intro classes broken up by experience level, more advanced discussion encouraged during office hours rather than class time, etc. The result has been that while the real-world gender gap in tech remains wide, at Harvey Mudd 55% of the last class of computer science graduates were women, up from 10% in 2005.

HOW 2 COLLEGES HELP NATIVE STUDENTS SUCCEED The Chronicle of Higher Education; 1/8/2017 Two institutions in Montana – the University of Montana which is 5% Native American (compared to 1% Native American nationwide) and Blackfeet Community College which is 97% Native American – have taken various steps to encourage and increase Native American enrollment in college, from sending admissions directors to each reservation, to building Native American-inspired buildings on campus, to “meeting students where they’re at.” Retention and graduation rates remain low, but some on campus argue that the statistics don’t take into account students who leave and come back or take a longer path to graduation. Some administrators and professors at BCC take it one step further and argue that majority Native institutions need a separate accreditation system that recognizes a different set of values and benchmarks than the current “euro-centric” accreditation process.

HOW COLLEGES CAN TEACH STUDENTS TO BE GOOD CITIZENS The Chronicle of Higher Education; 1/13/2017 Particularly in the wake of the recent political campaign, many professors and administrators are taking a new look at the idea of civic engagement – the idea that students shouldn’t merely be 450

taught how democracy works in theory; they should be taught how it works in practice and how to fully participate. Creating group discussions that force students to interact with those who have different views or arranging service learning to meet community needs are just two ways this goal can be achieved, but faculty buy-in can be hard to come by, particularly when there is scant evidence so far to show that participating in civic engagement at the collegiate level carries over into adult life.

A BETTER USE OF SPACE The Chronicle of Higher Education; 1/8/2017 Some universities, faced with declining enrollments and an uncertain revenue stream, have begun to look for creative ways to bring money to campus and avoid having to close their doors. Both Antioch College and Hendrix College are looking at unused land owned by the campus as a possible source of income. Housing units – market price, rentals, and subsidized – have been built on Hendrix and are in the process of being built on Antioch; the hope is that future residents eat on campus, buy from the campus farm, join the rec center, or take classes in addition to paying for housing – all of which could provide a semi-stable revenue stream for a college struggling with inconsistent enrollment.

TODOS SANTOS CENTER NOVEMBER NEWSLETTER Check out all the latest stories from the CSU Todos Santos Center in the latest edition of our newsletter!

NATIONAL WESTERN CENTER *SPECIAL EDITION* NEWSLETTER This special edition newsletter is all National Western Stock Show and went out to subscribers a week before the holidays. 451

WHEN COLLEGE WAS A PUBLIC GOOD The Chronicle of Higher Education

At a recent town-hall meeting in Tucson, local business leaders took up education in the state of Arizona. They examined state support for public colleges — among the lowest in the country — and fretted about their future work force, says Gary D. Rhoades, a professor of higher education at the University of Arizona. They had even gone to the statehouse to meet with legislators, he heard at the town hall. "If you need to raise taxes," the businessmen had told their representatives, "we’ll give you political cover."

To their surprise, the professor recalls, the legislators waved off their requests. One reportedly said: "Those kids don’t need college."

In a state where 60 percent of schoolchildren are Hispanic, and the legislature is overwhelmingly white, the words "those kids" have meaning.

"It’s not hard to figure out that when people say ‘those kids,’ it’s a euphemism for African- American kids, Latino kids, Native American kids," Mr. Rhoades says. "We have been systematically disinvesting in higher education, and that is precisely at the time when people who want higher education — lower-income kids, students of color, and immigrant kids — have increased." As the student population has diversified, the language that many people use to define the value of a college degree has shifted, from a public good to an individual one. Is that merely a coincidence?

It’s a jarring question for a sector that sees itself as a great equalizer, in a society that aspires to be a meritocracy. But look at a range of evidence, and it seems that policy makers — with the encouragement or tacit acceptance of the public — have erected barriers to higher education based on race and class.

That is a difficult theory to pin down, and one not everyone believes. As federal and state governments face many financial obligations, and budgets are tight, it may be facile to argue that a decline in public higher-education funding is grounded in racism. Jason Delisle, who studies higher-education finance at the American Enterprise Institute, points to the burdens of pensions, Medicaid, and K-12 school systems, drawing a connection between increased spending there and declines for colleges.

Other scholars in economics, higher-education policy, and cultural studies point to arresting correlations, though they’re subtle, shrouded in dog-whistle politics. Even in the dawn of the Trump era — after xenophobic and racist rhetoric energized the campaign of the populist billionaire — few policy makers would bluntly say they don’t want to pay for some students’ education because of the color of their skin.

Yet such attitudes have been documented, says Anthony P. Carnevale, director of the Georgetown University Center on Education and the Workforce. "This is a well-known, constant theme in economics." Studies have found that diversity is an impediment to the welfare 452

state, of which education is part. A report by the Harvard Institute of Economic Research in 2001 concluded that Americans do not support European-style social-safety nets, including education benefits, because of racial fragmentation — and a belief that minorities benefit more from wealth redistribution. Countries like Finland, Japan, and South Korea beat the United States in educational attainment not because their people are smarter, Mr. Carnevale says, but because they are racially homogenous. And that seems to lead to broad public support for education.

Working on labor and education policy for many years, Mr. Carnevale, 70, has seen that dynamic at play. "White people my age are not going to vote to educate Hispanic kids or black kids," he says. "All the great advances in education" — like the Morrill Act to create land-grant colleges in 1862 and the GI Bill to educate veterans of World War II — "have come when there was a strong white majority." As those majorities have diminished, the public instead has pushed through measures to limit education benefits, restricting tax revenue, for example, cutting spending, and putting constraints on immigrant students.

Despite barriers to higher education, national and local campaigns are encouraging more minority students to go to and finish college. But gaps persist, and as the higher-education system stratifies, black and Hispanic students disproportionately end up on campuses with fewer resources. Simply raising attainment, if even that happens, may not be enough. A nation’s fortunes grow as more of the population actually learns new skills and accumulates knowledge, says Mr. Carnevale. If we are going to rebuild our economy, he says, we have to find a way to give more students the promise of a high-quality education.

The original GI Bill, passed in 1944, is hailed for widening access to higher education. And it did expand opportunity, but only for some.

In the decades before World War II, ethnic Europeans poured into the United States, and Italian- Americans in particular suffered legal and social discrimination. Like other predominantly Catholic groups from Southern and Eastern Europe, they lived in segregated urban enclaves ("Little Italies") and tended to perform manual labor. Many white Protestants saw these immigrant groups as swarthy, dirty, criminal — a threat to the supposed genetic and cultural purity of America.

As World War II wound down, with a great need to reintegrate returning soldiers and kick-start the postwar economy, Congress passed the Servicemen’s Readjustment Act. On the GI Bill, ethnic European-Americans from Irish, Italian, Polish, Jewish, Greek, and Slavic backgrounds went off to college, joined the professional class, and moved to the suburbs. The measure essentially made them white, bringing prosperity and acceptance to groups that had not enjoyed it before.

But the GI Bill is as notable for the people it left out as for those it helped up.

A decade before the landmark verdict in Brown v. Board of Education desegregating public schools, with Jim Crow laws and restrictions in veterans’ services, African-Americans could not take advantage of the GI Bill the way whites could. In the 1940s and ’50s, blacks were barred 453

from attending many public universities. The historically black institutions of the day were often underfunded, with few graduate programs and limited capacity to accommodate more students.

All of that choked off educational opportunities for black vets. One study shows that among white veterans who turned 18 from 1941 to 1946, 28 percent enrolled in college, while among their black peers, the rate was only 12 percent. The GI Bill also paid for job training and apprenticeships, but studies suggest that blacks were underrepresented in those programs, too. The education gap was not for lack of desire: After the GI Bill was passed, 29 percent of white soldiers and 43 percent of black soldiers said they intended to enroll in college or training.

In 1960, California embarked on a public-education project that would rival the GI Bill in its ambitions. The California Master Plan established a tiered system of research universities, comprehensive state colleges, and community colleges to offer free higher education to the baby boomers of the state. The plan was a "class compromise," says Brian Murphy, president of De Anza College, who worked on higher-education policy in California in the 1980s. It acknowledged and in some form sought to resolve class differences among white Californians. In 1960, blacks were less than 6 percent of the state population, Hispanics just 10 percent.

"The subtext of race was not yet dominant in the master-plan conversation," Mr. Murphy says. "Anybody who looked at high schools in San Diego or Los Angeles saw that it was still largely white." He points out that Pat Brown, then governor of California, "knew that his base and the base for the next two generations would be largely white, an expanding middle class."

Mr. Murphy once discussed the master plan with Clark Kerr, who was president of the University of California system during its formation. "You were buying social peace," he told Kerr, who smiled. Mr. Murphy remembers the man’s response: "You’re on to it."

Over the course of the 1960s and ’70s, African-Americans and Hispanics started making inroads in higher education, thanks to movements that tore down legal and cultural barriers. From 1970 to 1980, the share of African-Americans with at least a four-year degree went from 4 percent to 8 percent, and among Hispanics, 5 percent to 8 percent.

Some of that progress eroded in the ’80s, when Ronald Reagan became president. He saw students as freeloaders and "tax eaters," much like unemployed parents on welfare, says Devin Fergus, an associate professor of African-American and African studies at Ohio State University. In a forthcoming book, The Land of the Fee: Hidden Costs and the Decline of the American Middle Class (Oxford University Press), Mr. Fergus lays out how the Reagan administration — with the help of conservative Southern Democrats — cut a billion dollars out of Pell Grants and other grant aid, shifting the emphasis of government support for higher education from taxpayers to bank-based federal loans. At a time when 40 percent of black children were living below the poverty line, the move hit working- and lower-middle-class families hardest. It started a trend toward ballooning student-loan debt, and it lessened minority- and first-generation-student enrollment at elite private institutions.

Some of the rhetoric on the student-aid cuts was racially coded, like Reagan’s talk of "welfare queens," Mr. Fergus says. William J. Bennett, who became Reagan’s secretary of education in 454

1985, called students who defaulted on their loans "deadbeats." They might have to absorb financial-aid cuts, he said, through "stereo divestiture, automobile divestiture, three-weeks-at- the-beach divestiture."

"This is dog-whistle politics," Mr. Fergus says. "He was borrowing the language of the anti- apartheid students," who advocated divesting in companies operating in South Africa.

Reagan started a trend that was mimicked by the states.

In the ’80s, California’s world-class higher-education system "faced a contradiction," says Mr. Murphy. The state had seen its Hispanic population more than double over two decades, to 19 percent, and in the next two, it would more than triple, to 32 percent by 2000. "The state didn’t have the capacity to handle it," Mr. Murphy says, "unless you had increased revenue."

Yet what voters and policy makers did was pass a series of measures that would starve the higher-education system and effectively cut out minorities. Proposition 13, which restricted tax revenue, passed in 1978. In the ’80s and ’90s, California, like other states, focused on crime, ramping up its prison system, and those racially charged efforts would absorb money that might otherwise have gone to higher education. By the late 2000s, California’s spending on corrections would catch up with, and even surpass, its spending on colleges.

Other measures further limited access. Voters approved Proposition 187 in 1994, denying education and services to undocumented immigrants, although the law was later blocked and struck down by courts. The University of California regents abolished affirmative action in 1995.

In the years since, the state’s public colleges have raised tuition markedly and cut enrollment for lack of capacity. The powerhouse tech industry, rather than trying to train local students, meets its work-force needs with programmers from India and China, Mr. Murphy says.

An "anti-tax ideology" dominates the state, and it’s not coming only from rich businessmen, he says. "For a lot of us, the triumph of the Reagan anti-government ideology coincides simultaneously with this dramatic demographic change."

Is all of this a scheme to hurt blacks, Hispanics, and other minorities? Other government programs seem to have had such effects: Studies have shown that welfare reform has restricted public-assistance benefits more in states with greater minority populations. Drug-enforcement laws have been found to disproportionately target African-Americans, while whites use drugs at a similar rate.

In looking for connections between diversity and the defunding of higher education, many see only hazy correlations. But emerging studies suggest some bias. Last year Nicholas Hillman, an associate professor of educational leadership and policy analysis at the University of Wisconsin at Madison, analyzed the balance between state appropriations and tuition revenue at more than 450 public colleges. Those that served primarily white students got more of their money from the state, while the colleges that served minority students relied more on tuition. He points to a striking, if lopsided, comparison between the University of Tennessee at Knoxville and 455

Tennessee State University, a historically black institution. State funding per undergraduate at Knoxville, where 7 percent of students are black, is $19,500; at Tennessee State, where 71 percent of students are black, that figure is $5,600.

In another study released last year, two economists — Eric J. Brunner of the University of Connecticut and Erik B. Johnson of the University of Richmond — looked at voting patterns in community-college bond referenda in California. Older white voters were less supportive of college funding than were younger voters, the study showed, and if they lived in areas with a high Hispanic population, they were significantly less supportive.

In many ways, we live in Reagan’s world, with attitudes he shaped about the role of government. What might formerly have been considered a leg up often gets called an entitlement or a handout. Public higher education has undergone a financial and conceptual shift: Once an investment covered mostly by the state to produce a work force and an informed citizenry, today it is more commonly shouldered by individuals and families, and described as a private benefit, a means to a credential and a job.

It’s not a conspiracy, but a neoliberal ideology, says Michael Fabricant, a professor of social work at the City University of New York Graduate Center and author, with Stephen Brier, of a new book about the disinvestment in public education, Austerity Blues: Fighting for the Soul of Public Higher Education (Johns Hopkins University Press).

"Austerity is being imposed not just on higher education, but across public services," he says. To what extent that randomly or deliberately coincides with rising national diversity is a tricky question. What’s clearer is the effect of stagnating social mobility. "In the absence of the necessary resources for these universities to either provide an affordable education on the one hand or a quality education on the other," he says, "a certain population is now being defined as disposable."

Not only activists have noticed. In 1982, Elizabeth Dole, serving as chair of a task force on equal rights for women, wrote a memo to the White House staff secretary, warning that cuts in student aid would lead to "a significant outcry of racism." She explained that the African-American community "looks to Pell Grants as one of their primary vehicles for upward mobility."

"People in the administration were aware of what the potential fallout would be from shifting from grants to loans," says Mr. Fergus, of Ohio State. What they didn’t count on was the stagnation of wages for most Americans and the escalating cost of college, which have ensnared whites, too. "I just don’t think they imagined that middle-class whites would ever need aid."

In an analysis of student-loan-borrowing patterns from 1992 to 2012, Mr. Hillman, of Wisconsin, found that black and white students were equally likely to borrow early on, but that over the decades, blacks have become more likely to borrow — and they borrow more. "Debt has been a crisis for low-income students for quite some time," he says, but only recently, as higher-income families are exposed to it, have policy makers taken an interest in the student debt "crisis." 456

Meanwhile, for poor whites, the economic options have narrowed. Decades ago, manufacturing was a path to a decent livelihood, but those jobs disappeared, to be replaced by work that requires postsecondary training. This year white, non-college-educated voters registered their frustration in the presidential election. At a time when the cost of college drives a national conversation about its payoffs, policy decisions that have made college less accessible have hurt everyone, regardless of race.

The country today looks different than it used to. Among schoolchildren, fewer are white, and many more are Hispanic. By 2040 or earlier, America will be a majority-minority nation.

And it has maxed out on the benefits it can get from its 80-percent high-school-graduation rate, says Mr. Carnevale, of Georgetown. "All the returns to the economy are coming from higher education now," he says. "Our ability to expand that is key."

If college degrees are more important than ever, could the country develop a new great advance in education that would give more people, a broad cross-section of the population, a real shot at college?

Hillary Clinton might have had a solution, borrowed from Bernie Sanders, to offer free public- college tuition to students from families making $125,000 or less. Or it could have been another advantage for upper-middle-class whites, leading to "bumping," says Mr. Carnevale, as top-tier colleges selected students with the best grades and test scores. Stratification might have worsened as less-prepared students — often black and Hispanic — found slots on campuses with fewer resources and lower graduation rates.

The free-college plan is far from reality, but it now serves as a rallying point for progressives. A future Democratic candidate could resurrect it in a presidential bid in 2020 or 2024, although some observers have wondered if the party will spurn minority constituents to recapture the white, working-class vote.

President-elect Donald Trump, who has branded Mexicans as "criminals" and described black neighborhoods as apocalyptic "war zones," has yet to present his higher-education agenda. But some fear he will revive policies that have hurt minorities.

The new administration may push more students toward private student loans, Mr. Fergus says, even as bipartisan commissions going back 20 years have found that the federal government provides loans more cheaply and efficiently than do private lenders. Given his aggressive talk on immigration, Mr. Trump will probably kill the Deferred Action for Childhood Arrivals program, which gives undocumented immigrants access to higher education. Mr. Trump might also revive the fortunes of for-profit colleges, some of which have been found to prey on minority students, leaving them in debt with a less-valuable degree, if any.

If the federal government doesn’t expand access to education, more of that burden will fall on states. In many of them, individuals and families now pay for a greater share of college costs than taxpayers do. Some places, like Arizona, have been going the way of California years ago. 457

Arizona’s legislature is whiter, more male, and more Republican than its population. And lately, that state — which has a clause in its constitution proclaiming that higher education "shall be as nearly free as possible" — has passed deep cuts in funding and big increases in tuition.

One of the leaders of that drive is John Kavanagh, a Republican state representative and community-college professor who has made headlines for his anti-immigration stance and remarks about Hispanics and Muslims. In an interview with The Chronicle, he was more measured, saying that the state has had to raise tuition to close a budget gap.

In 2012, he sponsored a bill that would require all students, regardless of income, to pay at least $2,000 toward tuition, in part to ease the burden on middle- and upper-middle-income students. He believes students should have "some skin in the game," and bristles at the notion of poor students’ paying less, thanks to tuition revenue that gets redistributed as aid.

"I don’t think it’s a good policy to take money from one student to pay for another student’s tuition," he said. "There is no reason that even a poor student can’t pay a nominal tuition, given that they are going to earn a lot more money than people who don’t have college degrees."

But Alfredo Gutierrez, president of Maricopa Community College’s governing board and a former Democratic state senator, doesn’t buy the straight argument against subsidies. The state has been extraordinarily hostile to education, he says, a pattern he believes is tied to race. State funding for the Maricopa system had been going down since 2009, he says, until it got none last year. Half of Maricopa’s students are nonwhite.

"The deterioration to the K-12 system, the community-college system, and the universities will ultimately have to be paid for," Mr. Gutierrez says. "If this trajectory that we are on continues, this will be an extraordinarily ignorant, uneducated state — certainly not a place that can deal with the economy of the future. And it will create a permanent underclass. There will be little ability to escape poverty."

But Arizona, he predicts, is on the cusp of change. The Latino population is growing so fast that in six to 10 years, Arizona could flip over politically, possibly taking the state in a different direction, one that is more willing to invest in the education of immigrants and minority groups.

"Perhaps we have lost a generation," he says, "but there is still a real opportunity to make a change."

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MOST COMPUTER SCIENCE MAJORS IN THE U.S. ARE MEN. NOT SO AT HARVEY MUDD The Los Angeles Times

Veronica Rivera signed up for the introduction to computer science class at Harvey Mudd College mostly because she had no choice: It was mandatory. Programming was intimidating and not for her, she thought.

She expected the class to be full of guys who loved video games and grew up obsessing over how they were made. There were plenty of those guys but, to her surprise, she found the class fascinating.

She learned how to program a computer to play “Connect Four” and wrote algorithms that could recognize lines of Shakespeare and generate new text with similar sentence patterns.

When that first class ended, she signed up for the next level, then another and eventually declared a joint major of computer science and math. Cheering her on were professors who had set out to show her that women belonged in computer science just as much as men did.

It’s a message that goes unheard at many universities. Nationwide, according to the Computing Research Assn., more than 84% of undergraduates who major in computer science are men.

Not so at Harvey Mudd, where more than half — 55% — of the latest class of computer science graduates were women, compared to roughly 10% a decade ago.

Programming is so popular now in this science and engineering corner of the Claremont Colleges that its professors are campus celebrities and incoming freshmen are excited for classes before ever setting foot on campus.

The school’s breakthrough came when the department’s professors realized that in order to change computer science’s reputation, they had to change how it was taught.

“Computing has an image problem … and the faculty just have their work cut out for them,” said Jane Stout, director of CRA’s Center for Evaluating the Research Pipeline. “They’ve got to market it. They’ve got to sell it. They’ve got to change all the negative stereotypes.”

At Harvey Mudd, the professors made the quizzes more fun and created homework assignments designed to bring groups of students together to solve problems.

“It no longer felt like an intimidating subject,” said Rivera, who is completing her senior project on facial-recognition algorithms with four classmates. “It felt like something that I could learn, that I could really do, even though I hadn’t done any of it in the past.”

Harvey Mudd’s revamped curriculum has been adopted by other schools, including Northwestern and UC Riverside, which are trying to broaden the subject’s appeal. 459

Increasing gender diversity is particularly important in computer science, a field that has infiltrated every part of modern life but is still primarily dominated by men. Women make up less than one-fifth of tech employees at Google.

“There’s a shortage of raw talent in the field,” said Ran Libeskind-Hadas, a computer science professor who led Harvey Mudd’s curriculum redesign. “Companies are offering six-figure salaries with good benefits to 22-year-olds. For young women not to be able to be part of that economy is just a failing on the part of society.”

Harvey Mudd’s computer science faculty members first began to rethink the way they were teaching the subject in 2005.

The program was producing successful graduates: the chief technology officer of Reddit, a founding engineer of Pinterest, creators of Adobe Flash software and solitaire for Microsoft.

But just as the field was rebounding from the dot-com bust, only a couple of women each semester were signing up for an advanced course in computer science.

Change needed to begin at the beginning, professors realized. The traditional introductory class was so dry that they drew straws to see who would have to teach it.

Using student feedback, observations from class and a bit of creative social psychology, professors identified three key reasons female students did not major in computer science: They didn’t think they would be good at it, they couldn’t imagine fitting into the culture and they just didn’t think it was interesting.

In the revamped curriculum, instead of having computer science students write arcane code, professors started giving them fun group puzzles and 3-D graphics to create their own games. After freshman year, students were offered research opportunities. They used algorithms to solve evolution questions and analyze DNA sequences.

Female students tended to think more about their careers in terms of its social relevance, and how their work could help the world, Libeskind-Hadas said. Many male students who pursued computer science, he found, were more passionate about building personal projects and ideas.

To help female students feel like they belonged, professors found ways to remove the so-called “macho effect” by which more-experienced students — usually male — intimidated others by answering all the questions. They pulled those students aside privately and asked them to let others speak. They urged students to save their more advanced conversations for time with their teachers outside of class.

They also divided the introductory course into sections based on prior experience, so that those who knew nothing were learning together at a comfortable pace — as were those who knew a lot. 460

Showcasing women in the field has made a difference, too. Today, more than 40% of the school’s computer science faculty is female. Students also are offered a paid trip to the annual Grace Hopper Celebration of Women in Computing, billed as the largest professional gathering of women in technology.

It helps that Maria Klawe, Harvey Mudd’s president since 2006, is a computer scientist herself. Her influence in making the field more attractive to women has been recognized by the White House’s chief technology officer. She has called out tech executives for not encouraging women. Often dressed in jeans and toting a fuchsia backpack on campus, she greets and encourages many of the 830 students on campus by name.

“Building confidence and a sense of belonging and a sense of community among these women makes such a huge difference,” she said. “Once you change the myths and the cultural beliefs about computer science, that has a lot of momentum.”

The introductory course is now one of the most popular across the Claremont campuses. More than 40% of non-computer science majors, hooked after the first class, go on to take at least two more programming courses. Within four years, the percentage of women majoring in computer science more than tripled.

Computer labs are now go-to meeting spots, abuzz with chatter and lively groups at work. Students flock to hands-on events such as overnight hackathons to apply what they learn to real- world problems.

Sophomore Mackenzie Kong-Sivert recently teamed up with three other young women to program a light-sensitive robot that would make a ruckus if its owner didn’t turn off the light and go to bed with time to get enough sleep. They dubbed it the Sleep Dep Buddy, with “Dep” being short for “Deprivation.”

Kong-Sivert says it’s been a relief to be able to work with female peers. At her Arizona high school, she often was the only girl in activities such as the robotics team.

“It was a lot of pressure,” she said. “I felt like I had to be a good representative and constantly be doing excellently at everything.”

That could happen to female students again after graduation. They’re lucky to be in the Harvey Mudd bubble, her teammate Lauren Hu said. The real world has to catch up.

Telle Whitney, who heads the nonprofit Anita Borg Institute for Women and Technology, said people are going to start noticing the computer science gender gap more as the need for that skill set grows ever larger.

Whitney and Harvey Mudd have teamed up to help more than 15 colleges and universities increase computer science diversity. The initiative — Building, Recruiting and Inclusion for Diversity, or BRAID — also draws from the work of other schools, such as Carnegie Mellon 461

University and Cal Poly San Luis Obispo, that have come up with creative ways to make coding appeal to women.

That kind of effort can’t stop with college, said Stout of the CRA, who’s concerned that many female students will be so ardently recruited by companies that they won’t consider getting doctorates: “We need more women getting these advanced degrees so that they have opportunities to be leaders in the field.”

It wasn’t coding that drew Harvey Mudd senior Alice Szeliga into classes in computer science, in which she majors with a focus on biology. Her thesis is on the life cycle of a parasite that causes African sleeping sickness, and she’s using her programming skills to discern patterns from more than 100 gigabytes of data.

Computer science, she says, is much more than “building a new app.” She wants to run a lab one day that conducts disease research “using computational techniques.”

In the meantime, she’s encouraging other women in her dorm to give computer science a try, even to major in it.

Perhaps, someday, they’ll all work side by side, solving the world’s problems together.

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HOW 2 COLLEGES HELP NATIVE STUDENTS SUCCEED The Chronicle of Higher Education

The University of Montana and Blackfeet Community College are vastly different institutions in size and mission. Yet both in their own way try to create a welcoming environment for Native American students that helps them to succeed. Here are how the two colleges support Native students, as well as some of the struggles the institutions face in graduating them.

University of Montana

The first thing most visitors to the University of Montana notice is the white concrete "M" that looms over the campus, at the top of Mount Sentinel. A Missoula landmark since 1908, the "M" is a widely recognized symbol of the college, and the city itself.

But the university’s most distinctive building is probably the Payne Family Native American Center, a 12-sided structure that sits on the main quad on the site of a historic Salish encampment. Opened in 2010, it's unlike the classic brick buildings that surround it — and that’s intentional, says William Brown, administrator of the Native American-studies department.

When college leaders were planning the building, they invited tribal elders to tour the campus and asked which architectural elements they’d like to incorporate into the structure, Mr. Brown says. The elders wanted nothing of the campus’ traditional buildings, which "reminded them of boarding school," he says. "They wanted something loudly indigenous."

With that in mind, the university built a center that honors Native design throughout, from the main entrance, which opens to the east to greet the sun, to the long skylight that resembles the slit of a teepee’s smoke hole. The domed roof mimics the inside of a hand drum; the frosted windows evoke sweat lodges.

"There’s always been this separation of home and school, and this brings them back into one space," says Mr. Brown. "It helps with retention."

According to the university, there are 600 Native students on campus, accounting for 5 percent of the student body (the federal tally, which does not include "multiracial" students, is 3 percent). It’s a small share, but it’s high given that Native students make up less than 1 percent of undergraduates nationwide. And when it comes to recruiting and serving Native students, the institution is ahead of most of its peers.

Each fall Emily Ferguson-Steger, interim director of admissions, visits every reservation-based high school and tribal college in the state to talk about enrolling in — or transferring to — the university. She walks applicants through the process, and teaches them the language of federal financial aid, so they won’t be intimidated by the jargon, as she once was.

"When I first heard EFC [expected family contribution], the first thing I thought of was KFC chicken," Ms. Ferguson-Steger recalls, with a laugh. 463

She says she urges many students to start at a tribal college first, like she did. The university has transfer agreements with every tribal college in the state. Students who plan to transfer to the university from a tribal college can apply as early as their first semester, and be co-advised by their home campus and Montana until they make the move.

When Native students arrive on campus, they are provided with mentors, cultural activities, and a "loudly indigenous" place where they can gather — the Native American Center. To introduce students to the broader campus community, the center hosts "Soup Wednesday" events in the rotunda, offering a free meal to any student who shows up. The president and the deans take turns serving the soup. Ms. Ferguson-Steger says the bi-weekly event "breaks down walls."

"Students can be in a center that makes them comfortable, and also integrate and feel that they’re part of a whole," she says.

This year staff in American Indian student services began giving presentations to other departments on cultural sensitivity and historic trauma in Native communities. They’re urging faculty and administrators to reject the stereotypes — both positive and negative — about Native students, to treat them as individuals, not as statistics.

But even with these efforts, the University of Montana struggles to graduate its Native students. Just 15 percent of Native students in the 2009 cohort of first-time, full-time students finished within six years, compared with half of white students.

One problem, Ms. Ferguson-Steger says, is that Native students are often pulled back to the reservation by family obligations or feelings of guilt about leaving for college. "It feels selfish, because we’re doing something for ourselves," she says. "Unfortunately, when one student leaves [for college], their cousin leaves, or their brother or sister leaves. It's a bit of a systemic problem."

On recruiting trips, she tells prospective students what she wishes she’d been told when she was young: that there will be family members who will criticize their decision to leave — aunts, and cousins who will complain when they miss birthdays and funerals because of midterms. She reminds them that they’re getting an education not just for themselves, but for their grandparents, who didn’t have the same opportunity. And she promises them it will all be worth it.

"You are going to get people saying, ‘You’re turning your back on us, you care more about your white education than us,’" she says. "But know that it’s coming from a place of love. And when it comes to graduation, they will be there."

Blackfeet Community College

On a mound of earth at the edge of Blackfeet Community College, a cluster of blue-painted rocks form the letters "BCC." To get to it, you have to cross a trash-filled marsh. It’s a far cry from the iconic "M" four hours south. 464

But the log and wood buildings that make up the campus core are modern, and the tribal college is growing, with a health-sciences building under construction. Financially, it’s in better shape than many of its peers.

Ninety-seven percent of the almost 500 students here are Native, as is 91 percent of the faculty, and most are from the Blackfeet Indian Reservation. Everyone is required to take classes in the history and language of the Piikani — the branch of the Blackfeet living in Northwest Montana — but Native culture and folklore are infused across the curriculum, in math lessons on teepee geometry and in chemistry labs where students make a painkiller from willows.

There aren’t many fluent speakers of Blackfoot on campus today, but the college tries to instill the basics, sending students a "word of the day," and posting inspirational sayings in Blackfoot in the hallways: "Stay healthy," "laugh often," "never give up" — mii-noh-mat-skoh-tsit.

Two years ago, the college adopted the Blackfeet "society" model, as part of an effort to strengthen students’ sense of belonging and community. The eight societies, which are named for animals important to the Piikani, offer both social and financial support, providing struggling students with gift certificates, gas cards — even holiday gifts.

The climate at Blackfeet Community College is informal and familiar. Professors joke around with students, and people wander in and out of classrooms. Tardiness is tolerated, but when students miss a class, professors will call to find out why — and will often offer a ride or other way to help.

Billy Jo Kipp, president of the college, says its ties to the reservation where it’s based are one of its biggest strengths.

"Tribal colleges know the environment and the unique challenges that students come from," she says. "They accept students where they’re at."

But those ties also bring some challenges. The Blackfeet reservation, in northwest Montana, is poor and geographically isolated, with low levels of educational attainment. Sixty percent of students are the first in their family to attend college, and two-thirds of them are unemployed.

Recruiting faculty from beyond the reservation can be difficult, because Browning is remote and salaries are low, in the $30,000-40,000 range, Ms. Kipp says. Those who accept the job are often asked to teach outside their area of expertise, and to take on social-service roles, such as soup preparation.

The Board of Trustees is appointed by the Blackfeet Tribal Business Council, and leadership decisions are often political; when Ms. Kipp took office in 2011, the college had been through nine presidents in 11 years.

The leadership turnover and the faculty challenges hamper the college as it looks to improve its to low graduation rate. Less than half of students return after the first year, and only 13 percent graduate within three years, according to federal statistics. 465

Ms. Kipp says such statistics ignore the fact that many students drop out and return repeatedly, taking longer than three years to complete their programs. They also overlook the key role that Blackfeet Community College and its peers play in community service and tribal education.

In the 2015 academic year, tribal colleges served more than 160,000 individuals through community education and outreach — 10 times the number they enrolled that fall, according to the American Indian Higher Education Consortium. That programming included things like health screenings, financial-literacy courses, and programs for youth.

The failure of government officials and accreditors to acknowledge these contributions and recognize other successes has led some tribal-college advocates to call for the creation of a separate accreditor for tribal colleges — or at least a supplemental one.

"The way we define success is different than most of the rest of higher education," says Cheryl Crazy Bull, president of the American Indian College Fund, the nation's largest charity supporting Native students. For some tribal college students, "achieving their educational or life dream might take 10 years."

"We need to look at metrics in the context of mission," says Ms. Crazy Bull.

Paul Willeto, a professor of arts and humanities at Diné College, in Arizona, the country's oldest tribal college, says creating a tribal-college accreditor is about living up to the ideal of tribal self- determination. Allowing tribal colleges to monitor themselves would finally give Native Americans the sovereignty they sought in higher education when they created the colleges in the 1970s.

"The current higher-education accreditation systems are grounded in Euro-American values and elitism," Mr. Willeto says. Those values "are not always congruent with tribal nation-building efforts."

An independent tribal-college accreditor would "recognize and validate tribal cultural practices and standards," he says.

But Ms. Kipp says she’s ambivalent about the idea. She worries that creating a separate accreditor for tribal colleges might send the message that the institutions want to be held to a lower standard than mainstream institutions.

Still, she wishes that the existing accreditors would look beyond graduation rates to more intangible outcomes — things like improved living skills and social consciousness.

"Students who attend tribal colleges are committed to the collective improvement of the tribe and the reservation," she says. "This is not measured by non-Native colleges."

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HOW COLLEGES CAN TEACH STUDENTS TO BE GOOD CITIZENS The Chronicle of Higher Education

When Elizabeth A. Bennion asked students in her political-controversies course to discuss gun control, the conversation could have dissolved into fractious debate. Her class included strong supporters and staunch opponents of gun-control legislation.

Equipping the class with readings and a list of gun-control measures, Ms. Bennion, a political- science professor at Indiana University at South Bend, asked the students to devise a policy. The catch? They were divided into groups that deliberately had both proponents and adversaries of gun control.

When they were forced to seriously consider an opposing view and to listen to their classmates’ concerns, Ms. Bennion says, students were able to move beyond rhetoric and arrive at a reasonable compromise. "What’s amazing," she says, is "every team ends up with multiple policy changes on which they agree."

That ability to engage in productive dialogue about contentious issues is increasingly timely in the wake of a presidential campaign marred by intolerance and bombast.

Many professors and administrators are now giving renewed attention to civic engagement — a catchall phrase for teaching students how to be good citizens. It encompasses a range of approaches, such as helping students have conversations across ideological differences, providing opportunities to engage in community-service projects, teaching critical-thinking and media-literacy skills, and building knowledge of political processes.

Ms. Bennion’s efforts are part of a broader movement to make civic learning and democratic engagement a priority, which is notable for taking place at a time when higher education is increasingly geared toward work-force preparation.

Five years ago this month, the National Task Force on Civic Learning and Democratic Engagement released a report, "A Crucible Moment: College Learning and Democracy’s Future." It sounded the alarm about what one of its authors called "a moment of serious reckoning for our democracy." The report and an accompanying campaign are credited with giving legitimacy to professors already working on civic-learning initiatives, and to regional and state systems that are making such efforts a priority.

But incorporating civic learning also faces broad challenges: How is it best to teach? Who is responsible for it? How do faculty members integrate it into their courses? And what do students take away from it?

Tensions and Trade-Offs

One tension arising from civic-learning efforts is whether it should focus on transmitting a body of knowledge or be taught as a general skill or disposition. Traditional civics courses teach students about government structures and democratic principles, says Caryn McTighe Musil, the 467

lead author of "A Crucible Moment," but not "how to ‘do’ democracy." Students must know not just how a bill becomes a law but also how to call their legislator or where to vote. "Democracy is dependent on verbs," says Ms. Musil, a senior scholar and director of civic learning and democracy initiatives at the Association of American Colleges and Universities.

To do that, some colleges focus on linking theory and practice, such as by building fieldwork, case studies, or simulations into course curricula. Many colleges arrange service-learning positions where students can apply their classroom knowledge to meet a community need. Students want to see the connection between their academic work and the world at large, says Richard Guarasci, president of Wagner College, in New York, and a longtime proponent of civic engagement. At Wagner, for example, students with finance or accounting skills sometimes team up with local businesses to help apply for bank loans or develop business plans, he says.

But that approach has its critics. A recent report by the National Association of Scholars, an advocacy group with a traditionalist view of higher education, criticized this "new movement" to infuse civics education with "progressive political activism." The report called instead for traditional civics courses covering how democracy works, and denounced service learning as "an effort to divert students from the classroom to vocational training as community activists."

Assessing the impact of civic engagement is another challenge that scholars are grappling with, says Mr. Guarasci. Assessment can be difficult because civic learning encompasses so many skills. And each of those skills is often hard to quantify. In a rubric to gauge students’ levels of civic engagement, the college and university association tries to. Among other things, the scholars who created the rubric say high performers should be able to "tailor communication strategies to effectively express, listen, and adapt to others," and to "collaboratively work across and within community contexts."

While professors and administrators can rely on surveys or attendance at community or campus events as one metric when students are in college, the true measure of civic engagement comes later in life, as students graduate, enter the workplace, and settle down in communities, says John J. Theis, executive director of the Center for Civic Engagement for the Lone Star College system, in Texas. "It will be difficult to assess," he says, "but hopefully we’ll see a more-engaged citizenry."

A study by Katy Harriger, a co-chair of Civic Learning and Democratic Engagement at Wake Forest University, suggests such long-term engagement may be occurring. Ms. Harriger, a professor of politics and international affairs, and her research partners followed up with a cohort of students who had been exposed to various civic-learning initiatives while undergraduate "Democracy Fellows" a decade ago.

Those fellows participated in seminars and events around deliberation, democracy, and other civic issues. When compared to a group of control students who had lacked similar exposure, Ms. Harriger found the Democracy Fellows were, 10 years later, generally more willing to be engaged in political life and to converse with people they disagree with. 468

Practical Steps

"A Crucible Moment" urged colleges to teach civic learning within disciplines. But, at many colleges, faculty buy-in can be difficult. According to Indiana’s Ms. Bennion, professors may not be comfortable teaching civic engagement or may feel they’re being burdened with one more obligation. But she says including civic learning doesn’t have to mean giving up on existing departmental goals.

Ms. Bennion, a co-editor of Teaching Civic Engagement: From Student to Active Citizen, a 2013 book, is working on a follow-up volume to be released in August. In part it will aim to provide discipline-specific examples of civic learning so faculty members see that it isn’t as difficult as they might fear. Professors can include a unit or add an exercise asking students to reflect on the connection between course topics and public policy. "There are very practical steps that you can take to integrate this into your existing curriculum and enrich students’ learning," she says.

Christopher Swan incorporates an element of service learning into his civil- and environmental- engineering courses at Tufts University. In one class about hazardous waste, for example, Mr. Swan, an associate professor, gave students data on three contaminated lots in the Boston area and asked them to develop a system to clean the lots up.

He used to make up data about waste sites, but when he started using real examples, he was struck by how much more involved and motivated his students became. When the students work with a community, they learn real-world skills, like how to deal with incomplete data or to satisfy multiple stakeholders — skills they don’t learn from him "standing in front of them and reciting case history after case history, or just saying, Do this calculation."

"In terms of what they were learning," Mr. Swan says, "they were going beyond what I would teach in a class."

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A BETTER USE OF SPACE The Chronicle of Higher Education

Already, small stakes topped with plastic flags outline the site of what Antioch College hopes will be, within a year or two, the first new construction on its campus since the liberal-arts institution reopened in 2011 after being closed for three years. But the new buildings won’t be for students or faculty or staff members.

Instead, they’ll house individuals and families in a progressive and ultra-sustainable 34- unit community tucked between a vacant dormitory and Antioch’s Coretta Scott King Center for Cultural and Intellectual Freedom. The residents will enjoy a shared common house as well as ready access to a variety of Antioch offerings, including courses, cultural events, the library, recreation facilities, and more. And the 34 homes are just the first of more than 300 that Antioch leaders foresee building over the next decade or so on land that the college can’t imagine ever needing for students. The college plans a mix of cohousing (in which people have their own homes but share space and take part in what’s usually called an "intentional community") and conventional homes, among them rental, market-price, and affordably-priced units.

The goal of all this construction is to create additional revenue streams for a struggling liberal-arts college that last month trimmed salaries for top employees and eliminated five positions as it grapples with both enrollment and fund-raising shortfalls. Plans call for the income to include — eventually — earnings from leasing the land (which the college will continue to own) and also from rental units. In addition, there will be revenue from selling new residents memberships in the college’s Wellness Center, which was renovated in 2014 at a cost of $8.5 million, and from letting them buy meals in the college’s dining halls and purchase food from the college organic farm. If the residents enroll in courses, that may bring the college money, too.

"What we’re trying to do is create stable, reliable sources of revenue over time, as opposed to feast-and-famine cycles of enrollment," says Tom Manley, Antioch’s president since March 2016. He’s mindful that last fall’s freshman class came in at only 45 students, significantly fewer than the 80 to 85 the college had anticipated. (Unlike students in the previous four classes, who were offered free tuition as the college reopened and sought accreditation, last fall’s first-year students are expected to pay half- price tuition, $16,618. This coming fall’s enrollees will face full-price tuition of $34,568.)

Meanwhile, the college is worried that many of the donors who contributed generously to help it reopen cannot continue giving at the same levels.

Antioch’s situation is unusual in that it was shuttered from 2008 to 2011, and at this point its long-term prospects are by no means guaranteed. So while it may have more incentive to take risks than richer institutions, it has no monopoly on creative approaches to finding revenue.

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Richard Ekman, president of the Council of Independent Colleges, says that using unneeded land and other resources to establish diversified income streams may be a good option for colleges that have already sought to boost their income by offering in-person continuing-education courses and online graduate degrees. The former market "quickly got saturated," he notes, while the latter is "growing like crazy" — suggesting that it, too, could be headed for a saturation point.

Antioch is not the only small college to have looked to excess property for revenue. Hendrix College, in Arkansas, began developing land across a major thoroughfare from its central campus a decade ago. In the years since, a town square with retail space and housing for 175 students has gone up, along with 55 single-family homes — all arranged as a walkable community by DPZ, the architecture firm that was founded by Andrés Duany and Elizabeth Plater-Zyberk (Ms. Plater-Zyberk is a former dean of the University of Miami School of Architecture, where she is still on the faculty).

The Village at Hendrix, as the project is known, "wasn’t intended to be a commercial development, as much as an opportunity to enhance the value of land near the campus and increase the vitality of the area," says W. Ellis Arnold III, the college’s senior executive vice president. Nonetheless the college remains the majority owner in two limited-liability corporations controlling the property.

Antioch’s development plan is equally ambitious, especially for a 220-student college that is for all practical purposes a start-up, even though it traces its history to 1852. The idea of adding housing for nonstudents took hold several years ago after some of the alumni involved in reopening the college began talking about retiring to Yellow Springs, a walkable southern-Ohio town with good restaurants, great schools, and a progressive approach to almost everything.

But Yellow Springs also has a very tight housing market in which comparatively few homes come up for sale and those that do are expensive. "There’s not a lot of turnover," says Monica Hasek, director of the Wellness Center. Most of the available land in town has already been built on, and much of the surrounding farmland is protected from development by conservation easements.

At the same time alumni were talking about moving back, Antioch’s trustees and administrators were on the lookout for ways to take better advantage of assets that weren’t contributing as much as they might to to the institution’s survival, including empty areas of the campus, a thousand-plus-acre nature preserve called Glen Helen, and a lively NPR affiliate, WYSO.

"We need to focus on leveraging these assets that we have and making them productive," says Malte von Matthiessen, a 1966 graduate who heads the Board of Trustees. "One asset is the land, and the land has been fallow."

The college is working to tie other assets — among them Glen Helen and WYSO — more closely to its curriculum, but they’re also seen as attractions that will help draw 471

residents to the new housing.

Until planning is completed, the development project’s total cost is an estimate — $6 million to $7 million, although that figure includes the value of the land, which the college already owns. But because the cash-poor institution will have to rely on outside investors to pay for the construction, it will make somewhat less over the long run than it might otherwise. Mr. Manley says Antioch and Sandy Wiggins, a sustainable- development consultant who is serving as the lead developer, are looking to foundations to help support the effort and have already identified one that will contribute $1 million. Construction won’t begin until all the money is in hand.

"If we had our choice, financially it’s better for us to control more, but controlling the land isn’t bad," Mr. Manley says. "The land leases are modest for 60 years in terms of what they’ll generate, but it’s always good to have that kind of steady stream of revenue."

According to the current business model, he says, the real benefit for Antioch will come from the related income sources, such as the Wellness Center memberships.

Since it reopened, Antioch has had a strong commitment to environmental sustainability, installing geothermal wells for heating and cooling, as well as a five-acre solar array beneath which grazing sheep keep the grass trimmed. When the housing idea came up, it was that commitment that led the president who oversaw the reopening — Mark Roosevelt, who left in December 2015 to become president of St. John’s College, in Santa Fe, N.M. — to get in touch with Mr. Wiggins, a former chair of the U.S. Green Building Council.

"We spent a couple of months talking about it, sussing out the vision," says Mr. Wiggins, and the vision turned out to be one of a college not set apart from its surroundings but fully integrated into its community as well as its environment.

Mr. Manley says Antioch wants to help answer questions like, "How do we take less space on the planet and collaborate more in terms of a whole series of things, like food that we eat and the ideas that we ingest and the culture that we make? And how can generations be supportive of one another?"

Eventually the college gravitated toward the strict standards of the Living Community Challenge, which Mr. Wiggins describes as "the leading edge of environmental and social sustainability." The cohousing project aims to produce more energy than it uses, for instance, and will probably have composting toilets. Individual homes will be compact — a studio apartment will be as small as 400 square feet — although they’ll be augmented by a communal living room and a communal kitchen and dining room for regular community meals. Plus the Wellness Center, the college library, a college- community theater, and the Glen Helen nature preserve will be close at hand. At least five of the first units will be subsidized to make them more affordable.

Because the inspiration came from people thinking of retiring here, the college originally 472

envisioned attracting retirees to the new housing. Retirement communities are located near a number of other colleges, including Dartmouth College, the University of Notre Dame, and the University of Florida, though most such communities are independently operated. (One exception is Lasell Village, a 225-resident "senior housing community" on the Lasell College campus, in Newton, Mass., where residents have their own dean and must complete at least 450 hours of "learning and fitness activities" every year.)

But when Antioch commissioned an in-depth market analysis, Mr. Wiggins says, the results showed interest among a broader range of people, and the focus was expanded beyond seniors. That said, retirees are overrepresented among an active and impatient group of would-be residents who pushed to make cohousing the pilot project, says Patricia A. Brown, who is 76 and helped bring the together the group, known as the Antioch Village Pioneers.

"One gal is 87," says Ms. Brown, explaining the impatience, "but we have two young families interested." In addition to the 400-square-foot studios, for one of which Ms. Brown plans to vacate her 1,800-square-foot house, the project will offer 700-square-foot one-bedroom apartments, two-bedroom units of between 900 and 1,000 square feet, and townhouses with three or four bedrooms. There’s interest enough to fill 40 units, she says, even though plans are still incomplete and no prices have yet been set.

"We’ve got a community of ready buyers," notes Mr. Wiggins. "Before we ever start, we’re sold out."

The college retained an architecture firm, Dover, Kohl & Partners, to do initial planning and run a five-day planning charrette in March 2015 that solicited ideas from interested people. Hundreds attended, including faculty members and a number of students, some of whom made it clear they weren’t particularly eager to share the campus. Subsequently Antioch hired another firm, McLennan Design, to plan the first 34 units.

Jason F. McLennan is the firm’s chief executive, and President Manley calls him a "leading light" in sustainable design. Mr. McLennan says one goal is to make sure the project feels knitted into the campus without infringing on its historic spaces, such as the open expanses on either side of the original main building. "The idea is that there is a seamless connection between classrooms and student dorms and the cohousing, that they feel like a community together." He adds that Antioch’s "will definitely be the greenest cohousing project ever built, and one of the greenest developments, period."

Because of that, the project may cost more than conventional construction — "slightly more," he says. "But we’re concerned about total cost of ownership, which includes the fact that they won’t ever have energy bills or water bills, they’ll have a more durable structure that has less maintenance costs through time. You’ve got to think about what’s cost-effective for the next hundred years, not just the for first group that moves in."

He assumes, of course, that Antioch will be around for the next century, In fact, Ms. Brown says the biggest fear among her group of pioneers is "that Antioch is going to 473

fold," although she’s not worried herself. "I was always very positive. The time was right for this."

Mr. Manley says Antioch’s trustees have been extra-cautious about the project, seeking assurances that it’s not "a scheme that sounds really exciting but diverts our energies and attention from what we really need to do."

They’ve also kept a tight rein on costs. "They had to come up with money to do the charrette and some of the predevelopment things," Mr. Manley says, "but there’s very little cash outlay on the front end. And the board’s saying it has to stay that way. We can’t have creeping financial commitment that we’re not aware of."

He also anticipates holdups. "All of the real-estate development projects and developers will tell you that there are a thousand detours that they run into in projects like this," he says. But he sees the risks Antioch is taking as important.

"We’re trying to develop a new platform to operate the college from, and that platform has to be resourceful," he says. "At times of scarcity, creativity has to be the counteractive agent." 474

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As a graduate student and a Todos Santos CSU Ambassador, I

have been fortunate to be a part of the ongoing collaboration of

CSU staff, student ambassadors, and Todos Santos community

members, whom are passionate believers in sharing knowledge

and respect to unite our communities and cultures to learn, live,

and grow together.

From collaboration on sustainable agriculture, to community and

youth engagement, I have not only learned from the Todos Santos community, but also built lifelong relationships. 475

As my graduate experience has revolved around Todos Santos, is was only fitting my thesis research would as well. I have had the amazing opportunity to work with the students from a local boarding school,

Casa Del Estudiente, investigating agricultural youth engagement and empowerment. In the time I have worked with these young individuals, I have been humbled by their eagerness to learn and impressed by their mature understanding of the world around them.

I believe CSU has a unique opportunity and responsibility to work alongside the people of this beautiful community to build a positive productive future that respects the cultural heritage in which the foundation of the community was built. I would like to thank the people of Todos Santos and the staff at the CSU

Center for welcoming me with open homes and hearts.

- Augusta Ahlm, CSU Master of Agriculture graduate student

Join our efforts CSU needs your support to expand international educational experiences for students, enhance the CSU Todos Santos Center facilities, and develop innovative research. Click here to learn more.

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Nancy Irlbeck Associate Professor in Animal Sciences, CSU "[I want people to know about CSU in Todos College of Business in Todos Santos 476 Santos] that we have worked to ensure that our

relationship is two-way – we learn from them as

much as they learn from us."